Crypto community debates if fake approval news can hurt Bitcoin ETF chances

On Oct. 16, a false report published by major crypto-focused media outlet Cointelegraph sent shockwaves through the industry over its claim that the U.S. Securities and Exchange Commission (SEC) had approved BlackRock's application for a spot Bitcoin (BTC) exchange-traded fund (ETF).

Timeline of Bitcoin

In the ever-evolving world of cryptocurrencies, Bitcoin has always emerged as the undisputed leader. Despite the significant drop in Bitcoin's value, with prices hitting as low as $25,000 last quarter, influential players have continued to accumulate the digital asset.

Investment management firm Blackrock has reacted to rumors about the approval of its Bitcoin Spot ETF application by the United States Securities and Exchange Commission (SEC) which caused quite a stir among the cryptocurrency community. Blackrock CEO Responds To Claims On Bitcoin Spot ETF On Monday, crypto news outlet CoinTelegraph posted on X (formerly Twitter) that the US Security and Exchange Commission (SEC) had approved a long-anticipated application of Bitcoin Spot ETF, but later retracted the report.

It is important to note that when a government agency seizes a crypto asset, it does not immediately own the assets. Ownership transfers only after a court ruling in favor of forfeiture.

In a volatile turn of events, the price of Bitcoin (BTC) experienced a dramatic surge and subsequent crash as a result of false reports regarding SEC's approval of the spot Bitcoin ETF application by BlackRock.

Top market personality Anthony Scaramucci has shared insights into the growing optimism surrounding Bitcoin (BTC) in recent times. Taking to the X platform, Scaramucci names five distinct factors behind this rally, calling them "catalysts" for the steep projection for the coin from analysts.

On a bustling Monday, the cryptocurrency-focused news platform Cointelegraph broadcasted that the U.S. Securities and Exchange Commission (SEC) had given the green light to Blackrock's Ishares spot bitcoin exchange-traded fund (ETF). The unverified news spread like wildfire, and in its wake, the value of BTC soared over 10% against the U.S.

The U.S. government has amassed Bitcoin worth approximately $5 billion in recent developments. These assets, confiscated in connection with various criminal activities, now form one of the largest known Bitcoin caches.

Recently, journalist and Bitcoin educator Natalie Brunell spoke to Catherine Wood, Founder, CIO, and CEO at ARK Investment Management, LLC (aka “ARK” or “ARK Invest”). During this interview, Wood discussed various aspects of Bitcoin and the future of spot Bitcoin Exchange-Traded Funds (ETFs).

Rumors about an approval of the iShares Bitcoin spot Exchange Traded Funds (ETF) sent the price of BTC skyrocketing yesterday, only to come back to Earth when the asset managers, BlackRock, confirmed the news was false.

Bitcoin (BTC) soared on Monday after Grayscale came closer to having its spot-bitcoin exchange-traded fund approved for trading on the US stock exchange. US markets regulator the Securities and Exchange Commission (SEC) said it would not appeal a court ruling, a source reportedly told Bloomberg on Friday, October 13.