Bloomberg ETF analyst Eric Balchunas believes that the recent fake XRP trust filing by BlackRock should not impact the Securities and Exchange Commission’s (SEC) decision on approving or delaying spot Bitcoin ETFs. However, he acknowledges that it is a “bad look” for the industry and could validate the SEC’s concerns about fraud and manipulation. Industry observers, including Michael Bacina from Piper Alderman, do not expect the incident to delay ETF applications. Lucas Kiely, CEO of Yield App, also states that the incident is unlikely to play a role in the SEC’s decision and urges the crypto community to remain calm. James Edwards from Finder argues that events like these could undermine efforts to launch a Bitcoin ETF in the US, as applicants will need to demonstrate their ability to protect clients from market manipulation and fraud. The fake XRP trust filing will be investigated further by the Delaware Department of Justice. BlackRock has filed for both a spot Ether ETF and a spot Bitcoin ETF, awaiting regulator approval for both.
