Shortly after the U.S. stock market opened on Monday, foreign media Cointelegraph published an article on the X platform saying that BlackRock 's spot Bitcoin ETF had been approved. Market enthusiasm was instantly ignited, and Bitcoin briefly surged 5%, once approaching the $30,000 mark.
However, the tweet only existed for 30 minutes before it was deleted, as BlackRock, Bloomberg and other media confirmed that it was false news, and Cointelegraph also apologized for "a tweet that led to the spread of inaccurate information." Bitcoin fell back above $28,000 in response.
People who speculate in coins have suffered heavy losses. According to data tracked by Lookonchain , a certain Bitcoin whale spent US$600,000 to purchase 20.5 WBTC after the news broke, and sold it for only US$563,000 after the rumor was refuted.
Meanwhile, BTC’s wild swings triggered massive liquidations.
According to CoinGlass data, as of the close of U.S. stocks on Monday, the 24-hour liquidation volume of the crypto market totaled $189 million, involving 40,521 traders. Of those liquidations, the vast majority were short positions worth $140 million. Bitcoin transactions accounted for $100 million of these liquidations.
The official X account of the USSEC posted: "Be careful what you read on the Internet. The best source of information about the SEC is the SEC."
BlackRock: Seeing “customer demand for cryptocurrencies from around the world”
BlackRock CEO Larry Fink said in an interview with Fox Business Channel on Monday that the rise in Bitcoin prices triggered by false news that spot ETFs were approved was actually an example of a "retaliatory rebound" in crypto interest.
Larry Fink has become a supporter of Bitcoin in recent months, repeatedly emphasizing its role as a "digital gold."
Fink said he could not comment on the specifics of his company’s pending Bitcoin ETF spot application, but said he has heard “customer demand for cryptocurrencies from around the world.”
Fink said: "The significance of this backlash is in part far beyond the rumors themselves. I think today's backlash is about the pursuit of quality, all the issues surrounding the Israeli war, global terrorism. I think there is more People seek quality, whether it's Treasuries, gold or cryptocurrencies, depending on how you look at it? I believe cryptocurrencies are going to play a big role in that."
Optimistic forecast for spot ETFs
Bitui previously reported that the U.S. Securities and Exchange Commission said last month that it was launching additional procedures to determine the spot Bitcoin proposed by well-known asset managers such as BlackRock, Invesco , Valkyrie and Fidelity. Whether the cryptocurrency ETF should be approved or rejected, the review time will be extended by at least another month.
Bitcoin prices saw positive moves on Friday after the SEC decided not to appeal the court’s recent Grayscale ruling, which could force the regulator to review Grayscale’s spot Bitcoin ETF application.
Philippe Bekhazi , CEO of XBTO Global, said the SEC’s failure to appeal is a critical moment for the cryptocurrency industry.
"Given the pressure the SEC faces from the courts and the U.S. House Financial Services Committee, this approval is a matter of when, not if," Bekhazi said in a note.
He added: “Once approved, it will bring new possibilities to many sovereign funds, pension funds, IRAs and 401k’s, and other institutions that may not have had access to digital asset investment opportunities before.”
The analyst maintains that approval is likely in the first quarter of next year once the SEC completes a comprehensive review. He added: “From there, we will likely see many other applications approved in 2024, which would be a positive step for institutional adoption of cryptocurrencies.”
ARK Invest CEO and CIO Cathie Wood also commented on the spot Bitcoin ETF filing in an interview with CNBC on October 17. She believes the SEC’s decision to seek more information could mean “hopes are rising” for a spot Bitcoin ETF approval.
ARK Invest is one of several asset managers seeking a spot Bitcoin ETF. Wood first described the status of her company's filing, saying: "Going public and disclosing last week, we have responded to the SEC's request for information regarding Bitcoin filings. We have also responded to the request, and basically this is what we can disclose at the moment.”
When reporters stated that many industry figures believed a spot Bitcoin ETF could be approved before the end of the year, Wood said this could be due to ARK’s own approval deadline. The SEC must make a decision on ARK's proposal by January 10, 2024. Although ARK's application came first, Wood noted that multiple ETFs could be approved at the same time.
Market data shows that after the false news was refuted, Bitcoin still maintained a certain increase. As of that day, US stocks closed up 4.8% to $28,505. BTC has gained 7.4% in the past month and 47.4% in the past year as investors have high hopes for a spot Bitcoin ETF to be approved this year.
Author: BitpushNews Mary Liu
For more information, welcome to join:
Bitpush Twitter: https://twitter.com/BitpushNewsCN
BitPush TG communication group: https://t.me/BitPushCommunity
Bitpush TG subscription: https://t.me/bitpush
This article comes from Bitpush: https://www.bitpush.news/articles/5316609 , please indicate the source when reprinting
