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- 1 On Monday, crypto users woke up to the rumor that BlackRock’s ETF filing had been approved.
- 2 A major crypto news website shared this update but removed it after some time.
- 3 Nonetheless, the rumor showed its impact and caused an uptick in BTC price.
Crypto enthusiasts were elated when BlackRock filed for Bitcoin ETF. The move meant that mainstream finance companies were ready to deal with cryptocurrency. Moreover, many other firms followed suit and filed for ETF. Recently, a rumor surfaced that the SEC has approved BlackRock’s iShares spot Bitcoin ETF. What happened after was expected and is of interest to all crypto folks.
Everything About BlackRock’s ETF Approval Rumor
Right after the news was disseminated, the price of BTC jumped from $28,000 to $30,000. The word started circulating over social media and spread like wildfire. Notably, some popular media houses also reacted to it. A prominent news website posted the update for the first time. But a while later, they reposted the news while adding a “reportedly” to it.
After some time, they deleted that post as well. The crypto community didn’t take very long to realize that it may be a fake piece. Soon, X (formerly Twitter) users began to ask the source of the tiding. Emily Graffeo, a prominent journalist, said that BlackRock’s ETF application is still under review. But the ephemeral tale had done its job already. It compelled the trader to short on Bitcoin and the price quickly upscaled.
In a few minutes, the price shot up to a 7.5% high and then slumped again. Furthermore, this incident revealed a critical to analysts as well. It showed how much the spot ETF applications can impact the market. Besides BlackRock, Fidelity, Vanguard, and many other renowned organizations have filed for it. In the meantime, some other interesting developments took place too.
The SEC decided not to go after Grayscale asking for the indemnity it sustained in the lawsuit. The matter also refers to the filing of a spot BTC exchange-traded fund. This act of letting go by the regulator insinuated to some that it’s probably readying itself for the ETF.
When Will the Approval Happen?
The Securities and Exchange Commission has turned down several applications in the past few years. The filings from Ark Invest and Grayscale are among them. According to the agency, the lack of regulations is the main reason behind it. The regulator says that there’s a great potential for manipulation in the ETF niche right now. However, the dynamics of this industry are quickly changing. The filing from a Wall Street behemoth like BlackRock is the living proof of it.
It is because these companies wager on something only when they’re confident about it. It should be noted that the recent applications were combined with a surveillance-sharing agreement. These bonds give the SEC more power to monitor the spot markets in the US.
In addition, BlackRock’s clout over the regulators is making analysts confident about their filing. Many of them believe that the approval could happen in the next few quarters.
So, many crypto enthusiasts are still gung-ho about the incident. They strongly believe that BlackRock’s filling will get the green light from the regulator soon. That would truly mark a new beginning in the history of cryptocurrency.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
