False XRP Trust Filing Unlikely to Impact SEC's Decision on Bitcoin ETFs
Summary:
The recent surge in XRP price due to a false trust filing isn't likely to influence the U.S. Securities and Exchange Commission's (SEC) decision on authorizing or delaying spot Bitcoin exchange-traded funds (ETFs), according to experts. Despite the potential validation of the SEC's concerns over market manipulation, it's emphasized that fraudulent events are unlikely to cause significant impact on current ETF applications. The fraudulent XRP trust filing incident has been referred to Delaware's Department of Justice. Meanwhile, BlackRock awaits regulatory approval for its spot Ether and Bitcoin ETFs, filed in November and June, respectively.
The recent price alterations of XRP (XRP) due to a deceptive trust filing attributed to BlackRock won't influence the U.S. regulatory board's verdict on sanctioning, or postponing, spot Bitcoin (BTC) exchange-traded funds (ETFs), according to market watchers. In the past, the Securities and Exchange Commission voiced concerns about the potential for manipulation in the Bitcoin market and has resisted spot Bitcoin ETFs due to a perceived absence of controls against such manipulative tactics. Eric Balchunas, Bloomberg's ETF analyst, commented to Cointelegraph that this bogus XRP filing would likely have minimal to no effect on the SEC's final resolution, yet it could possibly enforce the SEC's prior concerns.
On Nov. 13, a filing appeared on the Delaware corporate directory indicating BlackRock's establishment of the "iShares XRP Trust," seemingly laying the groundwork for an ETF. This caused a 12.3% rise in XRP within half an hour, which fell just as rapidly when Balchunas and others exposed the false report. This was confirmed by BlackRock, stating that a person posing as its Managing Director Daniel Schwieger had made the filing.
Michael Bacina from law firm Piper Alderman and chair of Blockchain Australia expressed doubt that the SEC would use this occurrence as an excuse for postponing ETF applications. He stressed the improbability that a lone rumor like this could legally justify the SEC in delaying current ETF applications, particularly those already under certain deadlines.
Lucas Kiely, CEO of Yield App, echoed similar sentiments, emphasizing that deceitful events like this counterfeit XRP filing would not influence the SEC's decision and advised the crypto sector to maintain composure. Kiely also highlighted the tactics used by some in the crypto space, exploiting sensationalism to attract audiences and manipulate market perception.
Meanwhile, James Edwards, a crypto specialist from Australian fintech company Finder, said such events could potentially compromise efforts to launch a Bitcoin ETF in the U.S., emphasizing that ETF applicants need to prove they can safeguard customers against market manipulation and fraud, a task complicated by the secretive nature of crypto markets.
The case of the fictitious XRP trust filing has been passed on to the Delaware Department of Justice for further investigation. As for BlackRock, it filed for a spot Ether ETF on Nov. 9 and is now awaiting regulatory approval, alongside its spot Bitcoin ETF application from June.
Published At
11/15/2023 3:00:56 AM
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