Bitcoin Surges on Erroneous Report of SEC Approval for BlackRock’s Bitcoin ETF
Bitcoin Soars on Misleading News
Bitcoin experienced a significant surge of 10% early on Monday, driven by an erroneous report claiming that the Securities and Exchange Commission (SEC) had approved BlackRock’s iShares Bitcoin Spot ETF. This misleading news followed an actual report on Friday, stating that the SEC would not appeal a court ruling, potentially opening the doors for Grayscale’s Spot Bitcoin ETF.
BlackRock Denies Approval
However, BlackRock promptly denied the report regarding its Bitcoin spot ETF, emphasizing that their application is still under review by the SEC. Despite the denial, Bitcoin prices briefly reached nearly $30,000 before retracing to $28,000.
SEC’s Decision on Grayscale’s ETF
Late on Friday, it was reported by Bloomberg News that the SEC opted against seeking a review from a federal appeals court regarding a decision that would enable Grayscale Investments LLC to introduce a Bitcoin exchange-traded fund centered on spot prices. The SEC’s decision was based on a ruling by the DC Circuit Court of Appeals in August, which overturned the regulatory authority’s initial refusal to allow Grayscale to transform its trust into an exchange-traded fund. The agency has chosen not to pursue any further appeals in this case.
In light of this ongoing situation, it is crucial to consider the potential impact of misleading news reports and the subsequent market reaction. It is important for investors to exercise caution and verify information from reliable sources before making any investment decisions.
