The Rumored Approval of iShares Bitcoin Spot ETF Sends Bitcoin Price Soaring
Rumors circulating on platform X suggest that the U.S. Securities and Exchange Commission (SEC) has approved iShares by BlackRock’s Bitcoin spot Exchange-Traded Fund (ETF). This news initially caused Bitcoin’s price to surge towards $30K. However, the momentum was short-lived as the value dropped to around $28K, leading to uncertain fluctuations in the market.
BlackRock Clarifies: The ETF Is Still Under Review by the SEC
Despite the rumors, both the SEC and Nasdaq have provided no evidence supporting the claims of an approved Bitcoin spot ETF from iShares. BlackRock issued a statement clarifying that the news was inaccurate and confirmed that the “ETF IS STILL UNDER REVIEW BY SEC!”
This scenario highlights how news, especially related to ETF advancements, can create volatility and sensitivity within the market. Eric Balchunas, a senior ETF analyst for Bloomberg, identified Cointelegraph as the source of the false report. The news gained traction through coverage from Reuters and other outlets.
Bitcoin Witnesses Liquidation Spike Amidst Market Response
The speculation surrounding the approval of a Bitcoin spot ETF has triggered a dramatic market response. Bitcoin reached peaks of $30K within an hour, resulting in liquidations totaling nearly $100 million. A significant portion of these liquidations, estimated at over $70 million, involved short positions.
This sudden spike in liquidations suggests that traders were caught off guard by the ETF news, leading to a swift market realignment and squeezing of short positions.
BlackRock’s Proposal for iShares Bitcoin Trust
In June, BlackRock’s iShares division submitted documents to the SEC proposing the establishment of a Bitcoin spot ETF. The proposed entity, the iShares Bitcoin Trust, intends to hold bitcoin primarily through a custodian representing the Trust. Coinbase is expected to be the designated custodian according to the submitted documents.
Hot Take: The Impact of False Reports on Bitcoin’s Price
The false reports of an approved Bitcoin spot ETF from BlackRock caused a temporary surge in Bitcoin’s price. This incident highlights the market’s sensitivity to news, particularly regarding ETF advancements. Traders should exercise caution and verify information before making investment decisions to avoid being influenced by inaccurate reports.
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