Cryptocurrency markets experienced a sharp surge in bitcoin prices following a now-debunked report on a bitcoin ETF approval by the U.S. Securities and Exchange Commission (SEC). The X post, published on Cointelegraph, claimed that BlackRock’s iShares division had secured the SEC’s approval for a pioneering bitcoin spot ETF. The news quickly gained traction and was further propagated by coverage appearing in Reuters, among other outlets.
The erroneous report initially propelled bitcoin’s value to the $30K mark, however the momentum was short-lived as the digital currency soon plummeted to around $28K, stirring volatility within the market. As this morning’s events unfolded, it catalyzed a sharp rise in liquidations, nearing a staggering $100 million.
In June, BlackRock’s iShares division, a giant in the fund management sector, submitted documents to the SEC proposing the establishment of a bitcoin spot ETF. The proposed entity, the iShares Bitcoin Trust, plans to primarily hold bitcoin via a custodian representing the trust. The documents designate the cryptocurrency exchange Coinbase as the expected custodian.
The approval of a bitcoin spot ETF by the SEC could significantly augment mainstream acceptance of bitcoin investing, increasing its accessibility to a broader investor base. While its status is still pending, BlackRock’s decision to file for a bitcoin spot ETF marks a critical juncture in the evolution of the cryptocurrency market. When the SEC does make its decision, it will have far-reaching implications for the market and could potentially shape the future of cryptocurrency investments.
I’m the founder of Columbia Advisory Partners, LLC, a certified CPA and CFP®, plus the co-founder of both Defi Steward and PlannerDAO. PlannerDAO aims to increase cryptocurrency access and adoption within the financial planning community. As the founder of Defi Steward, I guide investment advisers in managing digital assets for their clients. In addition, I’m an adjunct professor of finance at Gonzaga University. I hold and trade modest amounts of BTC and ETH because I’m passionate about what the future economy holds for the world of financial planning. I’m committed to promoting economic freedom and universal fiduciary standards. Follow me on Twitter or LinkedIn. Check out my website.
