Bitcoin spikes 10% on false Blackrock ETF rumors.

Unfounded Speculations Lead to Bitcoin Surge

Amid unfounded speculations that a US regulator had authorized the initiation of a new Blackrock fund, the value of bitcoin surged by 10% this afternoon.

Speculators believed that the long-awaited Blackrock Bitcoin Spot ETF had received approval from the US Securities and Exchange Commission (SEC), paving the way for the introduction of a vehicle that could potentially transform how investors acquire exposure to the crypto asset.

Blackrock Denies Rumors, Bitcoin Price Stabilizes

Initially reported by the cryptocurrency news website Coin Telegraph, Blackrock subsequently refuted the allegations, stating, “The SEC is still reviewing the application for the iShares Bitcoin ETF.”

This resulted in a swift reversal of bitcoin’s price, which had stabilized at approximately 2% higher for the day by 4 pm. The SEC has not commented on the matter yet.

US Regulator’s Stance on its ETFs

An exchange-traded fund that mirrors the spot price of bitcoin would enable investors to engage with the world’s largest cryptocurrency without the risky and technically challenging requirement of direct ownership.

Despite the fact that neither the SEC nor Blackrock have confirmed the rumors, the price per coin had soared from $22,500 this morning to over $24,000 this afternoon. It is currently valued at $23,000 per coin, having lost most of its gains, but is still up by approximately 4%.

As it trades on regulated markets, the ETF would, in principle, provide a safer and more convenient way to gain exposure to cryptocurrencies than purchasing them through unregulated platforms.

Blackrock is not the only rival asset manager to submit an application to the SEC for approval of a spot bitcoin ETF; Fidelity and Invesco have also submitted applications.

However, the regulator has thus far maintained that the fund managers have failed to demonstrate their ability to safeguard investors against market manipulation.

For instance, regulatory approval from the United States enables the influx of billions of dollars, and they offer Bitcoin ETFs in Canada.

Grayscale Investments’ application to establish such a fund was improperly denied by the SEC, according to a recent US court ruling; reports indicate the regulator will not appeal the decision.

Grayscale filed a lawsuit against the SEC, contending that the agency’s prior approval of specific surveillance agreements to mitigate fraudulent activities in bitcoin futures-based ETFs should render the same arrangement adequate for Grayscale’s spot ETF.

The investor contended that spot and futures funds ought to be regarded identically due to their reliance on the price of bitcoin.

Futures-based bitcoin ETFs invest in futures contracts, not bitcoin.

The appeals court determined that the SEC erred in arbitrarily denying Grayscale’s application because the SEC failed to provide an explanation regarding the material differences between the two arrangements.

Future of Bitcoin

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