- 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.”
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.
This is false! Confirmed by BlackRock by me. Some whacko must have added using BlackRock executive name etc. Cmon man. pic.twitter.com/cDpnycYwjQ
— Eric Balchunas (@EricBalchunas) November 13, 2023
As the news got debunked, XRP came crashing down to its pre-news levels of $0.65, according to 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.
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.
No! BlackRock will not apply:
>Solana Spot ETF
>XRP Spot ETF
>Cardano Spot ETF
for at least 10 years.
The reason is simply that most Alts still fall under the definition of securities.
Please do not be fooled by fake news!
— Kashif Raza (@simplykashif) November 14, 2023
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.