Bitcoin Spikes and Drops on False Reports of SEC Approval
Bitcoin experienced a surge in value, reaching over $30,000, due to incorrect reports claiming that the Securities and Exchange Commission (SEC) had approved a spot Bitcoin ETF. However, the cryptocurrency’s price dropped after BlackRock, the fund manager, confirmed that the application was still under review.
Initially, Bitcoin had risen by 10% following the reports but later settled at $28,055, still representing a 4.3% increase in the past 24 hours.
Several media outlets quickly clarified that BlackRock denied the approval of its BlackRock iShares Spot Bitcoin ETF, as reported by CoinTelegraph via Twitter.
Subscribe to our Social Media for Exclusive Crypto News and Insights 24/7!
In response to inquiries, BlackRock informed Reuters that “The iShares Bitcoin ETP application is still under review by the SEC,” clarifying that the process was ongoing.
We apologize for a tweet that led to the dissemination of inaccurate information regarding the Blackrock Bitcoin ETF.
An internal investigation is currently underway. We are committed to transparency and will share the findings of the investigation with the public once it is…
- Cointelegraph (@Cointelegraph) October 16, 2023
The tweet from CoinTelegraph claiming the ETF’s approval caused a frenzy in the market. However, the tweet was later modified to include the word “reportedly” and eventually deleted altogether.
CoinTelegraph apologized for the tweet and announced an ongoing investigation to determine how the misinformation occurred. The findings of the investigation will be shared with the public within three hours.
Pressure Mounts for SEC Approval of Spot Bitcoin ETFs
The pressure on the SEC to approve spot Bitcoin ETFs has intensified, particularly after Grayscale Investments achieved a significant court victory over the SEC in August. The judge criticized the regulator’s decision to approve Bitcoin Futures ETFs but not spot Bitcoin ETFs, deeming it “arbitrary and capricious.” Bloomberg reported that the SEC will not appeal this ruling.
According to former BlackRock director Steven Schoenfield, spot Bitcoin ETFs may receive approval as early as January. He predicts that these ETFs could attract up to $200 billion in Bitcoin investment products.
Research firm Bernstein suggests that the approval of spot crypto ETFs could lead to a surge in crypto assets under management, potentially increasing by 13 times over the next five years to reach $650 billion. Additionally, Bernstein projects that the crypto fund management industry could transform from a “cottage industry” into a sector generating $50 billion in revenues during this period.
Hot Take: The Impact of False Reports on Bitcoin’s Volatility
False reports of SEC approval for a spot Bitcoin ETF had a significant impact on Bitcoin’s price volatility. The initial surge followed by a drop highlights how sensitive cryptocurrency markets can be to news and rumors. It also emphasizes the need for accurate information and responsible reporting within the crypto industry.
