Bitcoin Price Surges on Rumors of BlackRock’s ETF Approval
The price of Bitcoin experienced a sudden surge from under $28,000 to $30,000 within minutes on Monday. This was fueled by unverified rumors circulating on social media that the US Securities and Exchange Commission (SEC) had approved BlackRock’s iShares spot Bitcoin Exchange Traded Fund (ETF) application. However, the veracity of these rumors was immediately questioned, with users asking for the source.
BlackRock later clarified that its ETF application is still under review. As market participants realized the lack of credibility behind the rumors, short-sellers entered the market and quickly pushed the Bitcoin price back down to $28,000.
Bitcoin’s Sensitivity to Spot ETF Applications
The significant price swings based on social media rumors highlight how sensitive the Bitcoin market is to spot ETF applications. In June, major financial institutions like BlackRock, Vanguard, and Fidelity applied to create their own spot Bitcoin ETFs. The recent decision by the SEC not to appeal against a legal loss in a lawsuit with Grayscale has further fueled hopes for spot Bitcoin ETF approvals.
Potential Approval of Spot Bitcoin ETFs by the SEC
The SEC has rejected numerous applications for spot Bitcoin ETF approvals in the past due to concerns about regulation and potential manipulation in the Bitcoin spot markets. However, momentum has shifted recently. Wall Street giants like BlackRock typically file for an ETF only when they are confident it will be approved.
The latest round of spot Bitcoin ETF applications includes surveillance sharing agreements that grant the SEC closer monitoring powers over the US Bitcoin spot markets. Analysts now believe that spot Bitcoin ETF approvals are highly likely in the coming quarters. The SEC has upcoming deadlines in October and final deadlines in mid-March 2024 to make a decision on these applications.
Hot Take: Spot Bitcoin ETF Approvals Expected Soon
Despite the recent surge in Bitcoin price based on rumors, it is important to note that the approval of BlackRock’s iShares spot Bitcoin ETF application remains unconfirmed. The SEC is still reviewing the application, and no official announcement has been made. However, with the increasing interest from major financial institutions and the regulatory developments in the cryptocurrency market, it is highly anticipated that spot Bitcoin ETF approvals will be granted in the near future. These approvals would provide more legitimacy and accessibility to Bitcoin investments, potentially leading to further growth in the cryptocurrency market.
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