In a whirlwind of excitement and uncertainty, the cryptocurrency market experienced a rollercoaster ride as rumours of the approval of BlackRock’s iShares Bitcoin spot ETF sent shockwaves through the digital asset landscape. As tweeted by crypto analytical platform Santiment, Bitcoin (BTC), the flagship cryptocurrency, surged to a startling $30,000, only to nosedive just as swiftly, leaving traders and investors grappling with a bout of volatility.
😮 After a premature announcement indicated that an #iShares #ETF had been approved 5 hours ago, #crypto markets saw its largest flash spike in years and #Bitcoin briefly jumped above $30K. Expect polarized opinions over the inorganic pump all week long. https://t.co/R61Zm6ovPY pic.twitter.com/GJyYi8ojLY
— Santiment (@santimentfeed) October 16, 2023
The frenzy began with a premature announcement that quickly spread across crypto news channels and social media platforms appearing in Reuters as cited by Eric Balchunas on X (former twitter) igniting a fervent anticipation within the crypto community. The decision of the Securities and Exchange Commission (SEC) had the potential to be a pivotal moment for the entire cryptocurrency market, capturing the attention of all.
Yet, the rapid ascent of Bitcoin’s price rested on an unstable foundation. The SEC’s official website did not validate the approval of a spot Bitcoin ETF at that time. Within minutes, Bloomberg analyst James Seyffart debunked the rumours, emphasising,
This is fake news; I can’t find anything that would confirm this at the moment. BlackRock has just confirmed to a FOX reporter that this is false; their application is still under review.
Further strengthening this stance, prominent Fox Business journalist Eleanor Terrett took to Twitter. She stated that BlackRock had personally confirmed to her that the information was entirely false and their application remains in the review stage.
🚨BlackRock has just confirmed to me that this is false. Their application is still under review. https://t.co/XIfIWZ0Ule
— Eleanor Terrett (@EleanorTerrett) October 16, 2023
In the aftermath of these revelations, Bitcoin’s price swiftly corrected itself, settling at $28,102. Interestingly, even before the false rumours surfaced, Bitcoin had shown signs of resilience. Earlier on that fateful Monday, it had breached the $27,250 resistance and climbed to $27,980 before a brief pause.
BlackRock’s iShares unit had submitted its paperwork to the SEC back in mid-June, seeking approval for a spot Bitcoin ETF. However, the SEC had consistently rejected similar requests from various fund companies. The potential approval of such an ETF could streamline Bitcoin investment, making it more accessible and secure for mainstream investors, ultimately fostering the wider adoption of cryptocurrencies.
The recent legal developments surrounding Bitcoin ETF proposals in the United States have injected a sense of optimism into the crypto sphere. The U.S. Court of Appeals in Washington D.C.’s ruling in favour of Grayscale’s attempt to challenge the SEC’s denial of their earlier Bitcoin ETF request has sparked hope that this long-anticipated product may soon gain regulatory approval, potentially ushering in a flood of institutional funds into the crypto market.
