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A false BlackRock spot ETF approval report caused a spike and crash in the price of bitcoin

BlackRock, the world’s largest asset manager, denied social media reports on Monday (Oct. 16) that the US Securities and Exchange Commission (SEC) had approved its long-awaited bitcoin exchange-traded fund (ETF).

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“The iShares Spot Bitcoin ETF application is still under review by the SEC,” said a BlackRock spokesperson.

Bitcoin briefly soared toward $30,000 after Cointelegraph’s post about the ETF on X (formerly Twitter), then dropped back down to $28,000 after BlackRock’s statement.

“We apologize for a tweet that led to the dissemination of inaccurate information regarding the Blackrock [sic] Bitcoin ETF,” Cointelegraph posted on X. “An internal investigation is currently underway,”

The first bitcoin ETF may start trading Jan. 10

The SEC’s blockbuster attempt to squash any attempts at creating bitcoin ETFs ended in a whimper. The commission chose not to challenge a recent major court decision that overturned its denial of Grayscale Investments’ bitcoin ETF application.

That outcome made it almost certain that the first bitcoin ETF will be trading by Jan. 10, according to Bloomberg Intelligence’s ETF analyst, James Seyffart. An update of ARK Investment Management and 21Shares’ joint bitcoin ETF prospectus signaled a “constructive conversation with the SEC,” Seyffart wrote, which usually means the fund is on its way to approval.

Regulatory approval of a bitcoin ETF would be a watershed moment when it comes to widespread acceptance of the cryptocurrency, legitimizing a contentious product for more investors.

An ETF would let market participants gain exposure to bitcoin without having to front the costs and manage the logistics of holding the asset in their own “wallets.” Backed by a large financial institution that handles trading, it would also spread bitcoin theft and volatility risk between the fund manager and many investors.

Investor speaks at a conference

Anthony Scaramucci, founder of SkyBridge Capital, believes bitcoin could reach $15 trillion in market capitalization.

Bitcoin could be a $15 trillion asset

Anthony Scaramucci, founder of SkyBridge Capital—also known for a short stint as Donald Trump’s White House director of communications—is bullish in the digital currency. Bitcoin could reach $15 trillion in market capitalization and is “more valuable than gold,” Scaramucci said on a recent podcast. Global bitcoin market cap hovered above $1.08 trillion as of Monday, according to CoinMarketCap data.

ARK Invest founder and CEO Cathie Wood raised eyebrows after raising her firm’s bitcoin price target to $1.48 million by 2030.

Growing institutional acceptance further legitimizes bitcoin as a potential mainstay for investors and could fuel wider adoption. BlackRock CEO Larry Fink once called cryptocurrency an “index of money laundering,” but he’s since taken a bullish turn and now believes “it’s going to transcend any one currency. ”

Even the White House holds 200,000 bitcoin worth $5 billion, seized from cybercriminals and the dark web.


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