Fake XRP ETF news has this effect on prices

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  • XRP’s gains were quick­ly reversed after a Bloomberg ana­lyst dis­missed the accu­ra­cy of the news.
  • Posi­tions worth more than $7 mil­lion were liq­ui­dat­ed in the last 24 hours.

A mis­lead­ing claim regard­ing the launch of a Rip­ple [XRP] exchange-trad­ed fund (ETF) by Black­Rock caused a flut­ter in the mar­ket, caus­ing a 12% spike in XRP and liq­ui­dat­ing mil­lions worth of futures positions.

XRP goes up and then down

The dra­ma start­ed after a post went viral on social plat­form X (for­mer­ly Twit­ter), show­ing a reg­u­la­to­ry fil­ing by Black­Rock to reg­is­ter the “iShares XRP Trust.”

This is usu­al­ly the first step towards launch­ing an ETF, as sim­i­lar fil­ings sur­faced before the launch of Bit­coin [BTC] and Ethereum [ETH] by the world’s largest asset manager.

Helped by some influ­en­tial han­dles, the unver­i­fied news spread, send­ing XRP to $0.73 with­in half an hour.

How­ev­er, the gains were quick­ly reversed after a Bloomberg ana­lyst cat­e­gor­i­cal­ly dis­missed the accu­ra­cy of the filing.

Eric Balchu­nas, who tracks ETFs, claimed that he ver­i­fied the infor­ma­tion with Black­Rock. He alleged that the act could have been car­ried out by fraud­u­lent­ly using the iden­ti­ties of Black­Rock officials.

As the news got debunked, XRP came crash­ing down to its pre-news lev­els of $0.65, accord­ing to Coin­Mar­ket­Cap.

Source: Coin­Mar­ket­Cap

While the 24-hour val­ue did not change sig­nif­i­cant­ly, XRP deriv­a­tives traders felt the pinch. Posi­tions worth more than $7 mil­lion were liq­ui­dat­ed in the last 24 hours, accord­ing to Coin­glass, with 66% belong­ing to longs.

Source: Coin­glass

Altcoin ETFs still far-fetched?

Respond­ing to the event, cryp­to mar­ket observ­er Kashif Raza asked users not to fall for news of alt­coin-based ETFs. He stat­ed that since most of them are still viewed as secu­ri­ties by U.S. reg­u­la­tors, there is a very low chance of them get­ting launched in the near future.

Is your port­fo­lio green? Check out the XRP Prof­it Calculator

Beware of manipulators

The XRP saga brought back mem­o­ries of the fake BTC pump last month, built on unver­i­fied infor­ma­tion by a reput­ed cryp­to publication.

In recent months, the cryp­to mar­ket has become sen­si­tive to devel­op­ments around spot ETFs. This presents an attrac­tive oppor­tu­ni­ty for mar­ket manip­u­la­tors to exploit the sen­ti­ment and fill up their cof­fers. Hence, ver­i­fy­ing infor­ma­tion shared on social plat­forms becomes critical.

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