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Unmasking the Consequences of the Fake XRP ETF Filing on SEC’s Decisions

The Impact of the Fake XRP ETF Filing on SEC’s Decisions:

  • A fake filing for a BlackRock XRP ETF has recently shaken the cryptocurrency market.
  • Despite concerns raised by the fake filing, experts agree that this incident will not have a significant impact on future SEC decisions.
  • BlackRock’s Bitcoin and Ethereum Spot ETFs are still awaiting approval from the SEC.

A Hoax with Minimal Consequences for Crypto ETFs

On November 13, there was a sudden increase in the price of XRP following a fraudulent filing for BlackRock’s XRP ETF, the famous “iShares XRP Trust.” This announcement, which turned out to be a hoax, resulted in an immediate 12% increase in XRP price, only to quickly drop once the deception was revealed.

Many experts, such as Eric Balchunas, an analyst at Bloomberg, are convinced that this incident will not have a significant impact on the Securities and Exchange Commission’s (SEC) decisions regarding the approval or postponement of Bitcoin ETFs by different players, including BlackRock.

Michael Bacina, partner at Piper Alderman, also believes that it is “unlikely that this isolated event will serve as a legal basis for delaying ongoing ETF applications.”

Concerns from Some Users

It is worth noting that the SEC has already expressed concerns about market manipulation in Bitcoin. Additionally, the regulator has rejected cash-settled Bitcoin ETF applications, citing a lack of controls against market manipulation.

It is therefore natural that some users are concerned that the XRP fake filing incident may confirm the SEC’s fears about fraud and manipulation by certain players in the markets.

This incident highlights the need for ETF applicants, such as BlackRock, to demonstrate their ability to protect clients against manipulation and fraud in cryptocurrency markets.

SEC About to Render Its Verdict

Recently, BlackRock filed an application for an Ethereum Spot ETF and is awaiting regulatory approval, in addition to its cash-settled Bitcoin ETF application filed in June. Many experts believe that the SEC’s decision is expected to be announced before January 10, 2024.

In the end, while this event may seem counterproductive, it may ultimately have no major impact on future SEC decisions.

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