ETF Approval – In the world of cryptocurrency, wild fluctuations are nothing new, but the recent frenzy surrounding Bitcoin may have just reached new heights.
On Monday, the price of Bitcoin briefly surged by a staggering 10%, sending investors into a frenzy, thanks to a false report that claimed the Securities and Exchange Commission (SEC) had given the green light to the first-ever spot Bitcoin ETF from BlackRock.
False Report Sets Bitcoin on Fire: ‘SEC Approves iShares Bitcoin Spot ETF
The report, which originally surfaced in a now-deleted tweet by the crypto-focused news outlet CoinTelegraph, declared in all-caps, “BREAKING: SEC APPROVES ISHARES BITCOIN SPOT ETF.”
BlackRock, a prominent player in the financial world, is the owner of the iShares Exchange-traded Fund brand. This misleading information set the cryptocurrency market on fire, with Bitcoin’s price rocketing to an intraday high of $29,900.
However, the jubilation was short-lived. A spokesperson for BlackRock quickly clarified to Bloomberg that the spot Bitcoin ETF application was still pending SEC approval.
As a result, the cryptocurrency market witnessed a dramatic reversal of fortunes, with Bitcoin’s price retreating. As of the latest reports, it is now up by approximately 3%, hovering slightly above the $28,000 level.
The rollercoaster ride that Bitcoin embarked on highlights the fervent anticipation investors have been harboring for the SEC’s approval of a spot Bitcoin Exchange-traded Fund.
While the agency has granted approval for Bitcoin futures ETFs, it has consistently rebuffed and postponed Bitcoin spot ETF applications over the past few years.
Nevertheless, hope was reignited when asset management giants like BlackRock and Fidelity entered the fray, submitting their own Bitcoin Exchange-traded Fund applications.
In addition to these heavyweight contenders, optimism soared further following a court ruling in favor of Grayscale Investments. The court overturned the SEC’s decision to reject Grayscale’s application to transform its Bitcoin trust fund into a spot Bitcoin ETF.
The Future Landscape: More Than 10 Bitcoin ETFs Await SEC Nod
A recent report from Reuters suggested that the SEC would not appeal this decision, infusing investors with a newfound sense of hope that a spot Bitcoin ETF might be on the horizon.
Prominent figures in the cryptocurrency realm, including Cathie Wood of Ark Invest, are voicing their confidence in the SEC’s evolving stance on Bitcoin ETFs.
Wood expressed her belief in a recent interview, stating, “I do think the SEC is moving now… some of the research that we believe is percolating up to [regulatory] commissioners might be getting through to them and might be the grounds now for the approval of a Bitcoin Exchange-traded Fund.
And we don’t think that the SEC will approve just one.
They will probably approve a group of them.”
Currently, more than 10 spot Bitcoin ETF applications are under review by the SEC. This surge of interest from major players and the recent court victory for Grayscale Investments hint at the increasing likelihood of a Bitcoin ETF finally receiving regulatory approval.
This development could potentially mark a pivotal moment in the evolution of cryptocurrency as it inches closer to mainstream adoption.
In conclusion, the false report of BlackRock’s Bitcoin Exchange-traded Fund approval may have been a temporary setback, but it served as a stark reminder of the fervor surrounding the cryptocurrency market.
With more and more financial heavyweights stepping into the ring and recent legal victories tipping the scales in favor of Bitcoin ETFs, the future looks promising for digital currencies.
Will the SEC give in to the mounting pressure and finally grant its blessing to a Bitcoin ETF? Only time will tell, but one thing is for sure: the cryptocurrency rollercoaster shows no sign of slowing down.