- Bitcoin’s value surged following false reports of a Bitcoin ETF approval.
- The SEC has not yet approved BlackRock’s Bitcoin spot exchange-traded fund.
- Experts suggest a small BlackRock investment could buy all exchange BTC.
Following several weeks of subdued trading activity, Bitcoin
Significantly, the abrupt surge in Bitcoin’s value can be attributed to news that the U.S. Securities and Exchange Commission (SEC) has sanctioned the first Bitcoin spot exchange-traded fund (ETF) for BlackRock. BlackRock is a worldwide investment company that oversees assets worth trillions of dollars.
The cryptocurrency sector has been patiently anticipating the authorization of the Bitcoin spot by the U.S. regulator despite numerous postponements. Nonetheless, subsequent inquiries disclosed that the narratives asserting the SEC’s endorsement of the inaugural BTC ETF were inaccurate reports.
Specifically, Eleanor Terrett, a journalist from Fox Business, stated that she reached out to the BlackRock team to verify the authenticity of the report in question. Citing one of the reports, Terrett posted on Twitter, “BlackRock has just verified to me that this is false. Their application is still being evaluated.”
Surprisingly, Cointelegraph removed the article after Terrett’s declaration. Participants in the cryptocurrency market have been conjecturing about the motive behind the inaccurate report. Some suggest it was a strategic action by certain individuals to gain financially from the excitement surrounding the approval of a Bitcoin ETF.
Renowned angel investor Evan Luthra contemplated the potential market scenarios following the community’s approval of a real Bitcoin ETF. “Consider the impact on BTC’s value, which surged to $30k on false BitcoinETF news. Now, think about the effect of the SEC’s actual approval of the Bitcoin ETF,” Luthra commented.
Likewise, the angel investors think that the untrue narrative was merely a “test pump”, based on their understanding, the real movie is yet to be released.
Significantly, considering that Blackrock manages almost $10 trillion in assets, specialists in the cryptocurrency market have contended that a simple allocation of 0.3% of their funds to Bitcoin could purchase all BTC available on exchanges.
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