The price of Bitcoin experienced a 8% jump, reaching a peak of $30,000, in response to the announcement that the Securities Commission had granted approval for BlackRock’s spot Bitcoin ETF. The news was initially reported via a tweet from CoinTelegraph.
However, it was subsequently revealed that this information was inaccurate, as BlackRock clarified that their ETF application was still pending review.
CoinTelegraph issued an official apology for this error and conducted an internal investigation, which revealed that it resulted from a failure to obtain editorial approval before publishing the news. You can find their explanation in this link.
What remains significant in this situation is the rapid and substantial surge in the price of Bitcoin, even in response to the false report of an approved spot Bitcoin ETF.
It’s important to recognize that spot Bitcoin ETFs have been pursuing listings on US stock exchanges for a considerable amount of time, facing resistance from the SEC.
Besides BlackRock, several other notable entities, including Fidelity, VanEck, WisdomTree, Invesco, ARK Investment, BitWise, and Galaxy Digital, have submitted applications for spot Bitcoin ETF listings, yet none have received approval.
Currently, Bitcoin futures ETFs are available for trading, but they essentially function as traditional financial instruments, specifically futures contracts. In contrast, a spot Bitcoin ETF would physically hold the actual cryptocurrencies.
The approval of spot Bitcoin ETFs would signify a significant milestone, indicating the acknowledgment of cryptocurrency’s legitimacy within the financial industry by regulatory authorities.
Expectations have risen, particularly following Grayscale Investments’ successful court appeal. The court overturned the SEC’s rejection of Grayscale’s request to transform its Bitcoin trust fund into a spot Bitcoin ETF.
There’s likely a substantial group of crypto investors eagerly awaiting this approval, viewing it as a signal of increased Bitcoin demand. This explains the swift response of buying up Bitcoin at the onset of the false information.
This situation underscores the enduring appeal of cryptocurrency as an investment for certain individuals. It appears to me that there’s a latent bull market in crypto, just awaiting for the right moment to pounce.
