It is unlikely that the recent fraudulent XRP trust filing, which briefly raised the price of XRP, will have an impact on the US Securities and Exchange Commission’s (SEC) decision to approve or deny spot Bitcoin (BTC) exchange-traded funds (ETFs). The event might confirm the SEC’s worries about market manipulation, according to Bloomberg ETF expert Eric Balchunas, but it should have little to no effect on the agency’s ultimate conclusion. Because there aren’t enough safeguards against market manipulation, the SEC has already rejected spot Bitcoin ETFs.
Michael Bacina, the chair of Blockchain Australia and a partner at Piper Alderman, voiced scepticism that the SEC would delay ETF registrations due to the fraudulent XRP submission. Yield App’s CEO, Lucas Kiely, concurred that the event is unlikely to influence the SEC’s decision and asked the cryptocurrency community to maintain composure.
The Delaware Department of Justice will be tasked with looking into the fictitious XRP trust filing further. The firm that was fraudulently linked to the fictitious XRP filing, BlackRock, is presently awaiting regulatory approval for the spot Bitcoin ETF that it submitted in June and the spot Ether ETF that it filed on November 9.