Bitcoin Price Surge on Rumors of BlackRock ETF Approval
Bitcoin price saw a significant surge following rumors related to the approval of BlackRock’s Bitcoin spot exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). While the initial news was later retracted, the impact on the market was notable.
Erroneous Report Sparks Growth
Bitcoin’s value rose by over 5%, nearing the $30,000 mark early on Monday due to a now-retracted report suggesting the SEC’s approval of BlackRock’s Bitcoin spot ETF. This misinformation led to a brief surge in prices.
Market Response and Clarifications
Following the denial of the report by BlackRock and other news outlets, Bitcoin’s price adjusted from its peak but remained notably higher. Starting the day around $27,750, Bitcoin settled just above $28,000 by the afternoon.
Significance of a Bitcoin ETF
The anticipation surrounding the approval of a spot Bitcoin ETF has long been a focus in the crypto market. Such an approval is considered a crucial step towards mainstream investor acceptance of crypto assets, potentially opening doors for institutional investments and market growth.
While several futures-based Bitcoin ETFs are already operational in the U.S., the approval of a spot Bitcoin ETF could bring substantial changes to the crypto landscape.
Future Outlook and Predictions
Despite the recent events, some investors believe that the full impact of a potential spot Bitcoin ETF approval is yet to be factored into the market. Alistair Milne, Chief Investment Officer of Altana Digital Currency Fund, noted that the overall market sentiment suggests room for further growth.
Analysts at Bloomberg have even speculated a high likelihood, around 90%, of a spot Bitcoin ETF receiving approval by January, signaling potential positive developments in the near future.
