In a recent turn of events, the cryptocurrency market experienced a significant upswing due to a piece of fabricated news. The false report claimed that BlackRock, the world’s largest asset manager, had received approval for its spot Bitcoin Exchange-Traded Fund (ETF) from the U.S. Securities and Exchange Commission (SEC).
A spokesperson for BlackRock verified the news as “false,” clarifying that the application was still under scrutiny. This confirmation led to a swift reversal in Bitcoin’s price, which dipped below the $28K per coin mark.
Bitcoin ETF Fake News Report Boosted its Price Temporarily
This news led to a surge in Bitcoin’s price, which rocketed from $27,700 per coin to a hefty $29,900. However, BlackRock later confirmed that the reports were erroneous and that no spot Bitcoin ETF has yet been approved.
The false report originated from a post by crypto news outlet Cointelegraph. The post spread rumors about the approval of a spot Bitcoin ETF in the US. The unverified news spread like wildfire, causing a significant upswing in the market.
Bloomberg Intelligence experts, Eric Balchunas and James Seyffart have dismissed the recent news as lacking credibility. They took to their official X accounts to refute the report, even labeling it as “fake news” shortly after it was published.
I believe this to be fake news.
While this would be positive for the things we've been saying. I can't find anything that would confirm this at the moment. #Bitcoin https://t.co/gVGGUsBfga
— James Seyffart (@JSeyff) October 16, 2023
In addition, Eleanor Terret, a reporter from Fox News, verified with BlackRock that the report was indeed false. She confirmed that BlackRock’s application is still under review by the Securities and Exchange Commission (SEC).
🚨BlackRock has just confirmed to me that this is false. Their application is still under review. https://t.co/XIfIWZ0Ule
— Eleanor Terrett (@EleanorTerrett) October 16, 2023
However, following the revelation of the truth, Cointelegraph has since removed the social media post and amended a post on Telegram. This incident highlights the sensitivity of Bitcoin to rumors about greater institutional adoption.
While the reports turned out to be false this time, many investors anticipate that the approval of spot Bitcoin ETFs could open the floodgates to billions in new investment.
In conclusion, while the crypto market is known for its volatility, this incident underscores the impact of misinformation on market dynamics. As such, investors are advised to stay informed and verify news from reliable sources before making investment decisions.
