Bitcoin prices jumped over 5% briefly on Monday, to over $29k, following incorrect widespread news reports that the Securities and Exchange Commission (SEC) had approved spot bitcoin exchange-traded funds (ETFs) from BlackRock and iShares. However, BlackRock later confirmed that the reports were erroneous and that no spot bitcoin ETF has yet been approved.
Bloomberg analyst James Seyffart said this was fake news, can’t find anything that would confirm this at the moment.
The false reports seem to have stemmed from fabricated news circulating online claiming the asset management giant had received SEC approval. This sparked a surge of excitement among bitcoin advocates as the rumors spread rapidly across social media and news outlets.
BlackRock just confirmed it's fake news.
— Michaël van de Poppe (@CryptoMichNL) October 16, 2023
Great way of taking the liquidity on #Bitcoin.
However, a spokesperson for BlackRock confirmed that the reports were completely fabricated and that they have not received any approval from the SEC for a spot bitcoin ETF. The price boost had reversed with bitcoin retreating back around $28,000 10 minutes later.
The SEC has resisted approving any spot bitcoin ETFs in the past, citing concerns around volatility and potential for manipulation. While many issuers have applications pending, no spot bitcoin ETFs have been greenlit in the U.S. to date.
The brief price surge shows the sensitivity of bitcoin to rumors about greater institutional adoption. While the reports turned out to be false this time, many investors anticipate that the approval of spot bitcoin ETFs could open the floodgates to billions in new investment. For now, advocates will have to continue waiting for the SEC to give the nod.
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