False News of SEC’s Approval of BlackRock’s iShares Spot Bitcoin ETF Triggers Plunge in Bitcoin from $30K High

The U.S. Securities and Exchange Commission (SEC) has yet to officially approve a spot Bitcoin ETF, but rumors circulating on platform X have led to widespread speculation that the regulatory body has recently approved iShares by BlackRock’s pioneering Bitcoin spot Exchange-Traded Fund (ETF). This unconfirmed development, linked to the eagerly awaited financial behemoth’s spot BTC ETF, initially sent Bitcoin’s price soaring towards $30K. However, the momentum was short-lived as the value dropped to around $28K, instigating a wave of uncertain fluctuations in the market.

Bitcoin Dumps From A $30K High

Everyone knew that the U.S. Securities and Exchange Commission (SEC) would have a hard time turning down a financial giant like BlackRock when it came to their proposed spot Bitcoin ETF. Recent rumors on X suggest that a history was going to be created as SEC reportedly approved a Bitcoin spot ETF from iShares, BlackRock’s division dedicated to exchange-traded funds.  

Confirmations from both the SEC and Nasdaq’s official channels have shown no evidence supporting these claims. Adding a definitive voice to the matter, BlackRock itself issued a statement clarifying that the news was inaccurate and said that the “ETF IS STILL UNDER REVIEW BY SEC.!”

This scenario underscores the volatility and sensitivity within the market to news, particularly news concerning ETF advancements. Eric Balchunas, a senior ETF analyst for Bloomberg, pinpointed Cointelegraph as the initial source of the false report.

The news quickly gained traction and was further propagated by coverage from Reuters, among other outlets. This series of events led to a significant, albeit misguided, market reaction, sending Bitcoin’s price to surge towards the $30K threshold in a short period.

Bitcoin Witnesses A Spike In Liquidation

Recent speculation about the approval of a Bitcoin spot ETF, highlighted in a Cointelegraph report, has catalyzed a dramatic market response, sending Bitcoin to peaks of $30K within the last hour.

This unexpected upswing has triggered a spike in liquidations, totaling nearly $100 million. Notably, a substantial portion of these, estimated above $70 million, consisted of short positions. The data implies that the suddenness of the ETF news surprised numerous traders, prompting a swift market realignment and a consequent squeeze on short positions.

In June, BlackRock’s iShares division, a behemoth in fund management, submitted documents to the U.S. Securities and Exchange Commission (SEC) proposing the establishment of a Bitcoin spot ETF. The proposed entity, the iShares Bitcoin Trust, plans to primarily hold bitcoin through a custodian representing the Trust, as detailed in the submission. The documents designate the cryptocurrency exchange Coinbase as the expected custodian.

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