SEC has not yet approved iShares Bitcoin Spot ETF; BlackRock denies Coin Telegraph report - TechStartups

SEC has not yet approved iShares Bitcoin Spot ETF; BlackRock denies Coin Telegraph report – TechStartups

Time Stamp: October 16, 2023 11:10 AM
Source Node: 2939850

BlackRock has denied a report from crypto news outlet Cointelegraph, which claimed that U.S. regulators had given the green light to their high-profile application for a cryptocurrency investment product. According to Reuters, BlackRock clarified the situation by stating, “The iShares Bitcoin ETP application is still under review by the SEC.”

Cointelegraph found itself in a hasty correction on Monday after initially reporting in a tweet that “SEC approves iShares Bitcoin SPOT ETF.” The crypto outlet later added the word “reportedly” to the tweet, but by that point, the damage was done. Bitcoin, well-known for its price volatility, surged by 3% to $28,000, following an earlier peak of 10% at $29,900, reaching its highest value since August.

Coin Telegraph had initially reported that the U.S. Securities and Exchange Commission (SEC) had given its approval to BlackRock, a major asset manager, for a spot bitcoin exchange-traded fund (ETF), Reuters reported.

However, the cryptocurrency market took a tumble when a Fox Business reporter, via the social media platform X, revealed that BlackRock had confirmed to them that the report was false, emphasizing that their application was still under review. The crypto community had been eagerly anticipating news regarding BlackRock’s application, with its potential approval expected to have a significant impact on the sector.

Joseph Edwards, Head of Research at the London-based crypto firm Enigma Securities, noted that the incident underscores how singularly focused the Bitcoin market is on the impending spot ETFs.

“The move does show how monomaniacally obsessed the bitcoin market is with the coming spot ETFs,” Edwards said.

For the past six months, it has been nearly the sole driving force behind Bitcoin’s movement, as opposed to the broader cryptocurrency markets.” “It has been almost the sole catalyst moving Bitcoin specifically for at least six months as opposed to broader crypto markets,” Edwards added.

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