Bitcoin experienced a temporary surge on Monday after a false report circulated claiming that the U.S. had approved a crypto-based exchange-traded fund (ETF). However, analysts assure that the potential approval of such products is more likely to occur in January of next year.
According to CoinDesk data, Bitcoin’s price (BTCUSD, +3.51%) briefly soared to as high as $29,976, reflecting a 10% surge before relinquishing most of its gains.
The catalyst behind this rally was a now-deleted post on the social platform “X” by the crypto news service Cointelegraph. The post falsely claimed that the U.S. Securities and Exchange Commission had approved BlackRock’s application for a Bitcoin-only ETF. In response to the misinformation, Cointelegraph issued an apology on social media, stating, “We apologize for a tweet that led to the dissemination of inaccurate information regarding the Blackrock Bitcoin ETF.”
A representative from BlackRock clarified that their iShares Bitcoin ETF is still currently under review by the SEC.
While the SEC has previously approved several Bitcoin futures ETFs, there hasn’t been approval for any ETFs based directly on Bitcoin itself. The agency cites concerns about market manipulation and vulnerability as reasons for the delay.
Looking ahead, the SEC faces a final deadline of January 10, 2024, to respond to ARK Invest and 21Shares’s spot Bitcoin ETF application, and a deadline of March 15 next year for BlackRock’s application.
Read: Bitcoin price briefly rallies 10% on false spot ETF report
The Potential Approval of Bitcoin ETFs
A Promising Scenario
In summary, while investors should approach this situation with caution, the potential approval of bitcoin ETFs offers a glimmer of hope for a more stable market environment.