Bogus BlackRock XRP Filing Spoofs ETF Watchers, Crypto Traders

The fake filing sent XRP higher by more than 10% before the token gave back those gains.

AccessTimeIconNov 13, 2023 at 9:36 p.m. UTC
Updated Nov 14, 2023 at 4:29 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Blackrock (BLK) is not attempting to launch an XRP exchange-traded fund (ETF), the asset manager said Monday.

A regulatory filing suggesting the company had taken a first step toward doing so is fake, a spokesperson said shortly after the news began circulating on social media. XRP's price jumped more than 10% at one point but had already begun sinking back to its pre-news intraday price of around 65 cents.

Blackrock has previously filed with the U.S. Securities and Exchange Commission (SEC) to launch spot bitcoin and ether ETFs. Prior to those SEC filings, were filings for a Delaware entity, which acts as the corporate vehicle for the product. Paperwork submitted Monday mimicked those forms but was not in fact filed by the asset management giant.

This is not the first time Delaware's corporate registration process has been abused, seemingly in an attempt to pump crypto prices. A pair of filings in 2021 suggested Grayscale, an asset manager, would launch trust vehicles for two tokens that Grayscale did not have plans for. Grayscale is a subsidiary of CoinDesk parent company Digital Currency Group.

Speculators took hold on Monday afternoon as ETF watchers, including Bloomberg's Eric Balchunas, amplified the phony filing, presenting it as true. Media corporations including Bankless and The Block also recirculated the news, fueling buy pressure on XRP.

But other informed observers expressed a high degree of doubt that Blackrock – hardly regarded as a risk-taker in crypto – would even think about creating an ETF product for XRP, which is the subject of active litigation with the SEC.

XRP also doesn't have a massive regulated futures market in the U.S., unlike bitcoin and ether.

Edited by Stephen Alpher.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Nikhilesh De

Nikhilesh De is CoinDesk's managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.

Danny Nelson

Danny is CoinDesk's Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about