Prominent legal experts react to a fake report regarding BlackRock’s attempt to create an XRP Exchange-Traded Fund (ETF).
Prominent legal expert Fred Rispoli has provided an analysis regarding reports that the world’s asset manager, BlackRock, is attempting to launch an XRP exchange-traded fund (ETF).
XRP Spikes 12% Due to Fake BlackRock Trust Filing
For context, the XRP community was enthusiastic in the late hours of yesterday after a regulatory filing suggested that BlackRock has taken its first step towards creating an ETF for the cryptocurrency.
The news caused the price of XRP to spike 12% to 74 cents in 30 minutes. However, this rally was short-lived after Bloomberg ETF analyst Eric Balchunas confirmed the report as fake.
Rispoli Shares His Observation
Reacting to the development, Attorney Rispoli confirmed that the XRP trust was listed on the Delaware Corp. Commission website. Rispoli mentioned the possibility of filing a fake entity on a legitimate corporation website, as he previously observed this trend in Arizona and California.
My thoughts on the iShares XRP Trust story:
1. It is indeed on the Delaware Corp. Commission website. I search this all the time to look up the right entity to sue in my legal cases.
2. Could someone file a fake entity? I’m only familiar in filing these in CA and…
— Fred Rispoli (@freddyriz) November 14, 2023
Furthermore, the lawyer who has closely followed the SEC v. Ripple case highlighted the similarities between Blackrock’s Ethereum ETF and the purported XRP trust filing.
According to Rispoli, the difference between the trusts is the date of the filing and their names. He pointed out that BlackRock’s Bitcoin Trust has a different registered agent than the name listed in the Ethereum and purported XRP trusts.
Rispoli disclosed that he did further research to confirm the authenticity of the widely circulated BlackRock’s XRP ETF by searching the SEC Edgar website. Per his findings, while the iShares Bitcoin Trust exists, no Ethereum and XRP trusts are registered on the platform.
Additionally, Rispoli said even if the report about the iShares XRP Trust is accurate, it will not be the first time a similar fund will be launched for the cryptocurrency. He drew attention to a similar fund that crypto asset manager Grayscale Investments established.
The attorney stated that the Grayscale XRP Trust was launched in 2018 and was later terminated in 2021 due to the impact of the SEC v. Ripple lawsuit.
Pro-XRP Lawyer Reacts
Interestingly, Attorney Jeremy Hogan, a partner at Hogan & Hogan Law firm, highlighted the process of setting up a trust for an asset like XRP.
According to Hogan, the process is easy and requires an entity to fill out the form and pay a meager fee of $500 to be given a placeholder on the state website.
You can spoof the formation of an “XRP ETF” Trust.
It’s fraud, but it’s actually very easy and just costs $500.
You only need to file two documents (attached), pay the money, and you get a “placeholder” on the state website.
That’s all I can tell you-other than “good night!” pic.twitter.com/0ZuHigrxWU
— Jeremy Hogan (@attorneyjeremy1) November 14, 2023
He speculated that the criminal behind the filing made the move to benefit massively from the price surge that comes with such a report.
“Criminal saw what happened with the Eth trust filing, files the XRP trust ‘filing,’ buys $100k XRP on leverage, sells at 74 cents, and pockets 2-3 million dollars,” Attorney Hogan said.
In addition, Hogan said the filing could be made by some BlackRock clients seeking exposure to XRP-related products.
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