- Ripple Rallies 12% And Back In One Hour On Fake ETF News
- Despite a prompt correction, the misleading report led to significant liquidations
Ripple’s XRP rose 12% in price before losing all of its gains in less than an hour after fake news circulated stating that BlackRock, the world’s largest asset management, had filed for a spot Bitcoin ETF.
On November 13, various cryptocurrency news outlets reported on a registration with the US Securities and Exchange Commission for a company called the iShares XRP Trust. The documents include the name and address of BlackRock’s managing director, Daniel Schwieger.
XRP jumped 12% in 25 minutes, from $0.65 to $0.73, as investors skipped due diligence and hurried to buy XRP.
However, after speaking with a BlackRock representative, Eric Balchunas, an ETF analyst at Bloomberg, soon dismissed the claim. “This is false!” Balchunas tweeted. “Some whacko must have added using BlackRock executive name etc.”
Within 25 minutes of hitting its local high, XRP fell down below $0.66 and is still trading around that level as of this writing.
The incident is the most recent instance of the ETF craze that is now sweeping the digital asset markets.
BlackRock sparked interest in a spot Bitcoin exchange-traded fund in June, generating a flood of applications from competing asset managers. Unlike existing crypto futures ETFs, which invest in derivatives, a spot ETF would invest in and hold Bitcoin on behalf of investors, putting bullish pressure on the asset’s supply.
Last month, Bitcoin surged 6% in one hour after Cointelegraph incorrectly claimed the existence of BlackRock’s Bitcoin ETF, demonstrating investors’ high hopes for the product.
BlackRock also created a company named the iShares Ethereum Trust earlier this week, similar to the iShares Bitcoin Trust that BlackRock established a week before its Bitcoin ETF filing. In response to the news, XRP increased by 12% in one day.
$6 Million in Liquidations
The false alarm pointing to Blackrock registering an XRP exchange-traded fund (ETF) also led to a significant liquidation.
Coinglass data reveals a sell-off in response to the news. At the time of publication, the 24-hour liquidation volume for XRP amounts to $6.91 million.
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