Stunning Correlation Emerges Between XRP And XLM, What’s Going On?

On Monday, news quickly spread after a BlackRock XRP ETF filing popped up on the Delaware Corp. Commission website. The filing has since been claimed to be false. But the damage was already done as the token’s price surged quickly before reversing.

One interesting development from this event though was a curious correlation that emerged between the XRP price and the XLM price at the time. While the news was localized to XRP, XLM had surged just as much, emerging with a stunning correlation between the two.

XRP And XLM Correlation Balloons

In the wake of the rumored BlackRock XRP ETF filing pumping the token’s price, one enthusiast has noticed a significant correlation between XRP and XLM. Crypto analyst and educator Blockchain Backer took to X (formerly Twitter) to reveal what he terms as one of the “most bizarre” moves.

The chart clearly shows the XLM price surging just as the BlackRock news broke with a straight green candle. Likewise, when the news was debunked and the XRP price began to fall, so did the XLM price, in an eerily similar fashion.

In another post, Blockchain Backer revealed that XLM had followed XRP’s move in the 2-second timeframe. A chart shared with this post showed XRP’s movement and XLM’s movement on the same chart and the moves happened at almost the same time, as shown below:

XRP XLM BlackRock

“The fake news was literally XRP specific, and would impact XRP only, not XLM. If anything, you’d expect XLM sell off like the rest of the market. Instead, it mirrors. Why?” the analyst wondered.

XLM price chart from Tradingview.com (XRP)

Running A Similar Race

XRP and XLM have always seemed to run in the same circles and the correlation in their price movements has been a testament to that. One X user, in response to Blockchain Backer’s post, reasoned that the correlation was because both digital assets actually “share the same holders.”

One crypto analyst who has also closely tied the performance of XLM to that of XRP is Crypto Bilbuwoo. One of their long-running analysis includes both digital assets which the analyst expects to move toward new all-time highs in the same fashion.

In an October 15 post, Crypto Bilbuwoo posited that “The chart shows that 1.618 Fibonacci ratio(XLM: 6.5$, XRP: 26~33$) will be completed at the end of December.” The last time this happened was back in 2017 and the analyst expects a repeat of that trend, saying there would be a 6,500% surge for both assets.

Despite this correlation, Blockchain Backer still finds Monday’s simultaneous pump strange as he believes “those same holders would have dumped XLM for XRP. Not fomo bought XLM on that news story.”

However, as another X user explains, “Not if they believe XLM and XRP are brother and sister. There are some influencers peddling this for years. Doesn’t make logical sense but does with that narrative. XLM would be next!”

BlackRock’s XRP ETF Filing, Everything You Need To Know

Since Monday, discussions around the mysterious BlackRock XRP ETF filing that appeared in Delaware have dominated the crypto space. The news of the filing was initially debunked by Bloomberg’s Eric Balchunas, but recent developments have raised suspicions that the filing was actually made by BlackRock.

BlackRock XRP ETF Could Be Filed By Anyone

One interesting revelation that has come from the BlackRock XRP ETF debacle is the fact that pretty much anyone can make an ETF Trust. Pro-XRP attorney Jeremy Hogan revealed this on X (formerly Twitter), saying that anyone could actually spoof an “XRP ETF” Trust.

Hogan explains that while the filing is real, it is fraudulent and could be cheaply made with just $500. Apparently, all that is needed for such a Trust to appear on the Delaware Corp. Commission website is to fill out two documents. These include the ‘State of Delaware Certificate of Trust’ and the ‘State of Delaware – Division of Corporations’ documents. Then once the $500 fee is paid, Hogan says the filing then gets “a ‘placeholder’ on the state website.”

The attorney reasons that whoever did this may have tried to replicate what happened when BlackRock filed for an Ethereum spot ETF. “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.” On the other end of this, Hogan also reasons that maybe “Blackrock has clients who want exposure to XRP and have begun the process.”

Details Of The ‘Fake’ ETF Filing

Another attorney, Fred Rispoli, also took to X (formerly Twitter) to give their own two cents on the BlackRock XRP ETF situation. Rispoli confirmed what Hogan said about anyone being able to fake such a filing and having it listed on the site. But other than that, the attorney went into the details of the filing.

The XRP Trust filing reportedly matches the BlackRock Ethereum ETF filing with the exception of the name being changed and the date of the filing being different. However, the XRP Trust has a different registered agent than the BlackRock Bitcoin Trust but shares the same one with the Ethereum Trust.

Rispoli adds that only the BlackRock iShares Bitcoin filing is currently listed on the SEC’s Edgar site, which is where filings with the regulator are listed. There is no trace of an iShares Ethereum and XRP Trust. “However, the Bitcoin Delaware filing preceded the SEC Registration statement by 7 days (6/8/23, 6/15/23),” the attorney said.

He also added that there were no trademarks filed by BlackRock for all its crypto trusts filed this year, including the Bitcoin, Ethereum, and XRP ones. However, this is not out of the ordinary since the asset manager does not trademark all of its products.

Finally, Rispoli explains that even if the BlackRock XRP Trust filing were true, it wouldn’t be the first one. That actually goes to Grayscale, which ran an XRP Trust between 2018 and 2021. However, the asset manager discontinued this trust after the SEC sued Ripple over alleged securities violations.

XRP price chart from Tradingview.com (BlackRock XRP Trust)

XRP Trust Filing Still Up

Even though Bloomberg’s Eric Balchunas had said that an insider at BlackRock had denied that the asset manager filed the XRP Trust, the filing remained on the Delaware Corp. Commission website.

This raised skepticism among investors who began to speculate that maybe the asset manager may have made the filing after all. “If it was fake, it would’ve been delisted by now,” WhaleWire said on X.

At the time of this writing, there is still no official word from BlackRock on whether the filing is legit or not. However, Eric Balchunas has stated that a BlackRock spokesperson has confirmed the filing is fake.