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HomeCrypto NewsMarketFake Report of BlackRock XRP ETF Triggers 15% XRP Price Spike to $0.74 in 2 Hours

Fake Report of BlackRock XRP ETF Triggers 15% XRP Price Spike to $0.74 in 2 Hours

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The XRP price saw a substantial 15% spike from $0.6516 to a four-month high of $0.7487 within a two-hour window following fake reports of a BlackRock XRP ETF filing.

Claims of BlackRock XRP ETF

The ruckus began last night when a filing in Delaware suggested that asset manager BlackRock was looking to launch an XRP ETF. Several notable media outlets propagated the claim, including The Block, which disclosed it in a post on X. 

In addition, Bloomberg senior ETF analyst Eric Balchunas also called attention to the claim, giving it more publicity. Balchunas thought it was genuine after seeing it on the Delaware list of corporations. The circulating claim stirred enthusiasm among market participants. 

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BlackRock XRP ETF News
BlackRock XRP ETF

However, less than an hour later, reports suggested that the ETF filing was fake, as BlackRock denied ever making such a filing. Balchunas, in a second post, noted that a spokesperson from BlackRock had confirmed that they never filed for an XRP ETF. Nonetheless, BlackRock has not released an official statement as of press time.

XRP Price Responds

Enthusiasm soon turned to disappointment, but the market had already reacted to the ensuing buying spree that came with the earlier reports. Notably, within two hours following the report, XRP rallied from a price of $0.6516 to a high of $0.7487 last night. 

This marked a substantial 14.9% increase in less than two hours, demonstrating the potential effect that a genuine XRP ETF could have on the market. Interestingly, the $0.7487 high represented XRP’s highest value in four months. The last time the asset saw this price was in July.

Nonetheless, the recent upsurge was short-lived, as the subsequent reports emphasizing that the filing was bogus triggered a round of selloffs. The sudden pump and dump led to increased liquidations, as market participants on both ends suffered losses due to the erratic price movements.

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Notably, the XRP market has witnessed $6.4 million in total liquidations: $4.1 million in long liquidations, and $2.3 million in short liquidations. Interestingly, 70% of the liquidations over the past 24 hours, amounting to $4.51 million, occurred in four hours following the fake report of the BlackRock XRP ETF.

The market has stabilized, with XRP up 1.78% over the past 24 hours, trading at $0.6644 as of press time. The effects of the report also reflect in XRP’s trade volume, which has skyrocketed by 220% in the last 24 hours to $3,218,415,579.

Conflicting Beliefs

With BlackRock still maintaining public silence on the situation, some community members continue to believe that the filing is genuine. One of the reasons behind this sustained confidence is the fact that the filing is still on the Delaware Integrated Compliance Information System (ICIS) website.

However, more industry pundits have come up to debunk it. Due to the filing’s similarity with BlackRock’s ETH ETF filing, some proponents suggested that either the ETH ETF and XRP ETF are fake or both of them are real. ETF analyst James Seyffart debunked this notion, stressing that the ETH ETF is real, while the XRP ETF is fake.

The recent event would not mark the first time a filing for a fake ETF would make the rounds in the crypto community. In April 2021, an individual impersonated Grayscale to file for financial vehicle on nahmi and theta, two crypto-focused projects, in Delaware. Grayscale’s CEO Michael Sonnenshein clarified that they were fake.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Author

Sam Wisdom Raphael
Sam Wisdom Raphael
Sam Wisdom Raphael is a seasoned crypto news writer and journalist with 5 years of experience covering blockchain, DeFi, and crypto developments. Sam's active presence in the crypto community complements his deep understanding of the crypto space, allowing him to craft comprehensible price analysis reports and tackle technical blockchain concepts.

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