[NEWS] XRP price soars due to fake news about BlackRock's ETF application

On the 14th, the price of the cryptocurrency XRP rose by more than 10% at one point. This was triggered by fake news that BlackRock, the world's largest asset management company, had applied to the SEC (US Securities and Exchange Commission) for ETF approval of XRP.

XRP rose from $0.65 (about 98 yen) to $0.75 (about 113 yen). However, after BlackRock completely denied the ETF application, it fell to about $0.65 before the sudden rise. In response to the fake news, the volatility of the cryptocurrency market suddenly increased and fluctuated wildly.

Last month, there was also wild fluctuation due to false information about ETFs.

Last month, the US cryptocurrency media Cointelegraph spread a false report that "the SEC has approved the iShares Bitcoin Spot ETF applied for by BlackRock," causing wild fluctuations in the market. It seems that Cointelegraph's reporter posted the breaking news based on an unconfirmed screenshot he found on X (formerly Twitter).

In response to this fake news, BlackRock CEO Larry Fink said, "Part of this rally goes way beyond rumors. I think today's rally is about distracting from the issues surrounding the Israeli war and global terrorism."

Despite the fake news, he added that the market reaction shows the high potential demand for crypto investment products. He also said that investors are looking for safer assets in uncertain times. Crypto assets are turning into safe havens.

This fall, a series of Bitcoin spot ETF applications have been filed, and the euphoria has caused crypto prices to soar. Expectations are growing that the approval of the ETF will encourage individual and institutional investors to inject funds into digital assets.

Currently, there are 12 applications pending for Bitcoin spot ETFs. Bloomberg analyst James Seyffart said there is a 90% chance that the SEC will approve one by January 10, 2024.

Last week, BlackRock applied to create an Ethereum spot ETF. This has led to Ethereum recording its largest inflow since August last year. CoinShares said in a report that "sentiment has improved over the past two weeks." According to the company, the total assets under management for crypto assets is about $44 billion, the highest since several cryptocurrency funds collapsed in May 2022.

Reference:Blockworks
Image: Shutterstock

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