BlackRock denies plans for XRP ETF after false filing sparks rumors
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A regulatory filing suggesting that BlackRock is pursuing an XRP exchange-traded fund is false, a representative told CryptoSlate on Nov. 13.
The filing, which was submitted to Delaware’s Division of Corporations, closely resembles BlackRock’s filings for its spot Ethereum and spot Bitcoin exchange-traded funds. The filing was filed under the name and address of one of BlackRock’s managing directors.
Filings of this type typically precede or closely coincide with proposed rule changes to the U.S. Securities and Exchange Commission (SEC), allowing an exchange to list the fund in question. It does not appear that any such filing has been submitted to the SEC, further suggesting that BlackRock has no plans to pursue an XRP ETF.
The fake filing coincided with a surge in XRP prices, which rose 12% from $0.65 to $0.73 in less than one hour, only to retrace back to $0.65 just as quickly.
The party responsible for the fraudulent filing has not been identified.
Is an XRP ETF possible?
Though it is not impossible for an asset manager to pursue an XRP fund in the U.S., the token may not be a good candidate for an ETF due to the SEC’s lawsuit against Ripple.
Ripple reached a partial victory around certain sales, especially retail sales. However, the judge found that Ripple’s institutional sales qualify as securities offerings.
That means that, in addition to the SEC’s broader concerns around spot crypto ETFs, it may be difficult for asset managers to buy XRP in order to fund an ETF. On the other hand, XRP is traded broadly, and this possible roadblock is far from certain.
It should also be noted that there are already various funds outside the U.S. that make use of XRP. Companies that provide these products include 21Shares and Coinshares, which offer XRP exchange-traded products (ETP) in certain European markets.
The post BlackRock denies plans for XRP ETF after false filing sparks rumors appeared first on CryptoSlate.
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