XRP price shoots up as fake news of XRP ETF filing emerges
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XRP, the fifth-largest cryptocurrency by market cap, recently saw its price shoot up by over 10% in mere minutes after news emerged that BlackRock, the world’s largest asset manager, has filed an XRP ETF application.
However, soon after BlackRock confirmed that the paperwork was fake, XRP price quickly corrected to the same level where it was previously.
The hype for crypto ETFs is stronger than ever
The incident comes with a deeper meaning and a warning, showing just how easy it is to manipulate crypto price behavior with fake news. While the truth quickly came to light, anyone who sold XRP during this meteoric rise has likely managed to make some profit.
On the other hand, this development also shows how excited the crypto market is for crypto-based exchange-traded products, especially since this was not the first time that fake news had launched a cryptocurrency’s price sky-high in recent times. Something similar happened when news emerged that the US SEC had approved a Bitcoin ETF in late October.
The coin’s price skyrocketed, only to be corrected once the news was revealed as fake. As for XRP, the fling appeared late Monday, November 13, on the Delaware Department of State’s Division of Corporations site. Ripple’s XRP saw a 10% surge that took its price up from $0.650 to $0.719.
FOMO pushes investors into making reckless decisions
While the regulators warned the crypto community against fake news, advising them to be extra careful, it is likely that the buyers reacted as strongly and as quickly as they did, given that the fake filing emerged only days after BlackRock filed a legitimate application fo the creation of an Ethereum ETF.
With that being the case, opportunity seekers could be forgiven for thinking that the asset manager may have decided to make the same move, only with XRP in mind this time. After all, it was an opportunity at the time, and spending too much time researching and confirming the development was likely seen by many as wasting precious time. If the news was legitimate, the price would have shot up even higher before they got the chance to invest in XRP if they first tried to confirm that the filing was real.
Fortunately, BlackRock reacted quickly, confirming that it did not file an XRP ETF application nor that it has plans to do so. Meanwhile, the Delaware Department of State referred the matter to the Department of Justice.
