**Bitcoin Rises and Falls on False Report of SEC Approval for BlackRock Crypto Investment Product**
*Bitcoin* experienced a sudden surge in value on Monday, before quickly dropping most of its gains, following a misleading report from a crypto media source. The controversial asset manager BlackRock quickly denied the report that US regulators had approved its application for a crypto investment product, causing the market to react swiftly.
**Rise and Fall**
Known for its volatility, Bitcoin last traded up 3.82% at $28,211, after earlier rising as much as 10% to $29,900, its highest level since August. The initial spark was a report from crypto news outlet Coin Telegraph claiming that the US Securities and Exchange Commission (SEC) had given the green light to BlackRock for a spot bitcoin exchange-traded fund (ETF). However, the story was later retracted.
The digital currency then took a nosedive after a Fox Business reporter shared that BlackRock had denied the report on social media platform X. According to BlackRock, their application for a Bitcoin ETP is still under review by the SEC. Anonymous sources close to the SEC confirmed that the application is still pending.
**Reactions and Corrections**
The premature rally caused by the false report did not go unnoticed. According to Ben Laidler, the global markets strategist at eToro, the crypto markets reacted strongly to the rumors, demonstrating their sensitivity to any potential good news.
Coin Telegraph issued an apology and confirmed that an internal investigation was underway to address how the inaccurate information was disseminated. They also vowed to share the findings of the investigation with the public once it concluded within three hours and deleted the initial post.
**Looking Ahead**
The market has been eagerly awaiting decisions on several pending spot bitcoin ETF applications, with the expectation that their approval will significantly impact the sector. The SEC has previously rejected all spot bitcoin ETF applications due to concerns about investor protection from market manipulation.
Joseph Edwards, head of research at London crypto firm Enigma Securities, noted the intense focus on the coming spot ETFs in the bitcoin market. Lucas Kiely, chief investment officer at Yield App, viewed the false report as a “good dress rehearsal” for the inevitable market reaction once the SEC delivers a final decision on the applications.
**SEC Case and Future Outlook**
Recent developments also point to a legal battle over spot bitcoin ETFs. Reuters reported that the SEC would not appeal a court ruling finding it wrong to reject an application from Grayscale Investments. The court is expected to issue a mandate within the next week, likely instructing the SEC to revisit Grayscale’s application.
In light of the recent market volatility and the upcoming court mandate, the anticipation continues to build for the SEC’s final decision on spot bitcoin ETFs. The news maelstrom exemplified how headlines can drive significant market movements and highlighted the market’s high degree of sensitivity to regulatory decisions.
I have been featured in numerous publications, both online and offline, and am a regular speaker at industry events. I am also the founder of Crypto University, an online educational platform that helps people learn about cryptocurrencies and blockchain technology. In addition to my writing and teaching career, I am also an active investor in the cryptocurrency space. I have made investments in some of the leading projects in the space, and my portfolio has outperformed the market by a wide margin