A fake report claiming BlackRock’s application for a Bitcoin ETF was approved triggered a 10% surge in Bitcoin’s price.
The unfounded assertion was made by crypto news outlet Cointelegraph, sparking a wave of excitement across social media. However, both BlackRock and the Securities and Exchange Commission (SEC) debunked the rumor, and Cointelegraph subsequently retracted the post.
Despite the misinformation, Bitcoin’s price soared to nearly $30,000, a high not seen since July, before falling back down below $28,000 within 15 minutes of the rumor being disproven.
BlackRock CEO Larry Fink commented on the incident during an appearance on Fox Business. “It’s just an example of the pent-up interest in crypto,” Fink said. “I think the rally today is about a flight to quality.”
Fink further stated that Monday’s events underscored the global desire for a Bitcoin spot ETF, particularly amid ongoing international unrest.
However, some Bitcoin advocates fear the incident may be used by SEC chair Gary Gensler to highlight Bitcoin market’s volatility and potential for manipulation, potentially dashing hopes of a Bitcoin spot ETF approval in the U.S. in the near to medium term.
The SEC, while remaining non-committal on BlackRock’s application, indirectly referred to the event in a tweet: “Careful what you read on the internet. The best source of information about the SEC is the SEC.”
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