Bitcoin Pumps and Dumps After Fake ETF Approval News Spreads on X
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Bitcoin Pumps and Dumps After Fake ETF Approval News Spreads on X

Bitcoin rose to nearly $30,000 on inaccurate news that the SEC approved BlackRock's application for a spot BTC ETF.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Bitcoin surged to nearly $30,000 on Monday after the crypto news site Cointelegraph made an inaccurate post on X (formerly Twitter) stating that the Securities and Exchange Commission (SEC) approved BlackRock’s application to launch a spot Bitcoin exchange-traded fund (ETF). Cointelegraph then deleted the report and apologized for the confusion, prompting a price retracement to $28,200. 

$71M+ Liquidated on False Spot Bitcoin ETF Alarm

Bitcoin spiked to as high as $29,900 on Monday after the crypto news outlet Cointelegraph released a report saying that the SEC approved BlackRock’s iShares spot Bitcoin ETF. The report later became a false alarm, with BTC retreating to $28,200. 

BTC price reaction to fake news. Source: CoinMarketCap

The world’s largest cryptocurrency was still up 4.7% on the day of writing.

Notably, Cointelegraph released an article that said that the securities regulator had given the green light to BlackRock’s much-debated spot BTC ETF. However, it later appeared that there was no official confirmation for the approval. Cointelegraph deleted the article in question later. 

The crypto news site also released another tweet later, apologizing for the inaccurate report, adding that “an internal investigation is currently underway.” It also said it would “share the findings of the investigation with the public once it is concluded within 3 hours.”

Additionally, BlackRock then confirmed with the Wall Street Journal (WSJ) that there were no new decisions on its ETF application. 

“The iShares Spot Bitcoin ETF application is still under review by the SEC.”

– a BlackRock spokesperson told the WSJ.

According to Bitcoin Archive, the fake spot Bitcoin ETF news erased over $71 million in leveraged positions. 

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Bitcoin Fake News Pump Offers a Glimpse of What a Spot BTC ETF Means

Unsurprisingly, BTC saw an immediate price reaction in the wake of Cointelegraph’s report. 

Launching a spot Bitcoin ETF would significantly develop the crypto landscape. It would provide retail and institutional investors with an easy and regulated way to gain exposure to Bitcoin. The influx of capital from the ETF would likely boost Bitcoin’s price, as increased demand often leads to higher valuations. 

Additionally, it would signify the growing acceptance of cryptocurrencies by traditional financial markets, further legitimizing Bitcoin as an investment asset, which could attract even more investors and capital.

Investors and analysts said the chances of a first spot Bitcoin ETF launch in the US have increased after the SEC decided not to appeal a ruling by the court that the regulator failed to justify its denial of the ETF conversion adequately. In July, regulators in the EU approved the launch of a first spot BTC ETF in the bloc.

Do you think the SEC will approve spot BTC ETF applications filed by BlackRock and other Wall Street giants? Let us know in the comments below.