Bitcoin (BTC) saw a sharp drop of 8%, falling below $27,000, following misinformation regarding the approval of the iShares Bitcoin ETF.
The cryptocurrency briefly surpassed $30,000 after a headline in Reuters, coming from Benzinga, claimed that the Securities and Exchange Commission (SEC) had given the green light to BlackRock’s ETF application.
These reports, which many believed to be accurate, were later refuted by BlackRock’s own statements.
BlackRock pours cold water on ETF hype
Eleanor Terrett, Fox Business reporter clarified that BlackRock denied the approval claims and stated that its application remains under review. Reports from other media outlets, such as Forbes, have also confirmed that BlackRock’s Bitcoin ETF spot application remains in limbo.
CoinTelegraph, which was one of the first media outlets to break the news, later amended its post by adding the word “allegedly” to its claim, a move that drew criticism and humorous comments from industry observers. Noted ETF analyst James Seyffart said: “They edited the tweet to add ‘supposedly’ lol. Guys… they reportedly reported the report!”
The outlet has already apologized for reporting fake news. However, his mea culpa tweet about the fake BlackRock Bitcoin ETF report was met with a tsunami of comments from the community. The post on social media platform X has generated thousands of reactions in a matter of minutes.
Now that the dust has settled on this misinformation debacle, Bitcoin is currently trading slightly above $28,000, according to data from CoinGecko.
Whats Next?
Even though the bulls have faced a major setback, the approval of a Bitcoin spot ETF remains very likely in the near future.
Bloomberg analysts believe there is a 90% chance that a Bitcoin spot ETF will be approved before January 10, 2024. Recent developments from ARK and 21Shares regarding their BTC spot ETF applications suggest compromises constructive discussions with the US Securities and Exchange Commission (SEC), hinting at imminent approval.
Furthermore, the SEC’s decision not to appeal a ruling in favor of Grayscale strengthens the bullish case.
