BlackRock CEO Larry Fink Comments on False Bitcoin ETF Approval Rumor
The CEO of BlackRock, Larry Fink, addressed the recent controversy surrounding a false report claiming that the Securities and Exchange Commission (SEC) had approved BlackRock’s application for an iShares Bitcoin Trust ETF. Fink described the incident as an example of the high interest in cryptocurrency and attributed the price rally to a flight to quality. The rumor originated from a tweet by Cointelegraph, which was later retracted. Both BlackRock and the SEC debunked the false claim. Bitcoin’s price briefly surged to nearly $30,000 but quickly dropped back down. Despite the incident, Fink emphasized the global demand for a Bitcoin spot ETF.
Concerns about Market Manipulation and SEC Chair Gary Gensler
However, some Bitcoin advocates expressed concerns that SEC Chair Gary Gensler could use this incident as evidence of market volatility and manipulation to deny future Bitcoin ETF applications. They fear that this blunder could delay or prevent the approval of a Bitcoin spot ETF in the United States. Tweets from users on Twitter speculated about Gensler’s potential actions based on this fake news incident.
SEC’s Response and Reminder to Rely on Official Sources
The SEC responded to the situation with a tweet cautioning people to be careful about what they read on the internet and emphasizing that the best source of information about the SEC is the SEC itself. The regulatory agency has not provided any updates on BlackRock’s application for a Bitcoin ETF.
Hot Take: The Impact of False Reports on Crypto Market Volatility
This incident highlights the sensitivity of the crypto market to false reports and rumors. While it caused a temporary surge in Bitcoin’s price, it also raised concerns about market manipulation and the potential consequences for future ETF approvals. It serves as a reminder of the need for accurate information and reliable sources in the crypto industry to maintain market stability.
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