Bitcoin Price Rises Amidst BlackRock ETF Approval Rumor
Bitcoin experienced a surge of 3.82% in its price amidst rumors of approval for a spot bitcoin exchange-traded fund (ETF) by major asset manager BlackRock. The cryptocurrency was last trading at $28,211, after reaching a high of $29,900, its highest since August.
Crypto news outlet Coin Telegraph initially reported that the U.S. Securities and Exchange Commission (SEC) had approved BlackRock’s application for a spot bitcoin ETF. However, the story was later retracted. The price of bitcoin fell sharply after a Fox Business reporter stated on social media that BlackRock denied the report.
BlackRock confirmed to Reuters that the application for the iShares Bitcoin ETP is still under review by the SEC, and sources close to the commission also affirmed that the application is still pending.
The premature rally in crypto markets showcases their sensitivity to potential positive news. Analysts noted the market’s reaction to the rumors of ETF approval, with a global markets strategist at eToro stating, Crypto markets have just shown how sensitive they are to any potential good news.
Coin Telegraph offered an apology for its initial post, acknowledging that it disseminated inaccurate information and stating that an internal investigation is underway. The outlet removed the initial post and promised to share the investigation’s findings with the public within three hours.
The cryptocurrency market eagerly awaits news regarding several pending spot bitcoin ETF applications. If approved, these ETFs are expected to drive investment in the sector. However, the SEC has previously denied all spot bitcoin ETF applications due to concerns about investor protection from market manipulation.
Joseph Edwards, head of research at London crypto firm Enigma Securities, commented on the market’s anticipation for the ETF approval, saying, The move does show how monomaniacally obsessed the bitcoin market is with the coming spot ETFs.
While the news of the SEC approving a spot bitcoin ETF on Monday turned out to be a false alarm, it provided a dress rehearsal for the actual decision. Traders and investors closely monitor the headline risk and seek to anticipate the market’s movements based on the SEC’s final ruling.
In October, the SEC decided not to appeal a court ruling that found its rejection of an application from Grayscale Investments to create a spot bitcoin ETF was incorrect. The court of appeals in Washington is expected to issue a mandate soon, instructing the SEC to revisit Grayscale’s application.
Overall, the market continues to show volatility as it eagerly awaits news on the approval of spot bitcoin ETFs and closely analyzes the SEC’s decisions and actions.
Disclaimer: The above article is for informational purposes only and should not be interpreted as financial advice.
