$BTC briefly surges to $30k on fake news of spot Bitcoin ETF approval
Bitcoin experienced a sudden spike of over 10% on Monday, reaching $30,000 on Coinbase, after a false report claimed that the SEC had approved the first spot Bitcoin ETF. The report, which was posted on the X account of Cointelegraph, was quickly debunked by BlackRock, the asset manager behind the iShares Bitcoin ETF proposal, and the SEC itself.
The fake news caused a wave of liquidations worth over $100 million, as traders reacted to the market volatility. The rumor may have been fueled by the recent court ruling in favor of Grayscale, which allows it to convert its GBTC trust fund to a spot ETF. The crypto community has been eagerly awaiting the approval of a spot Bitcoin ETF, which could bring more institutional investors and capital into the market. However, the SEC has so far delayed or rejected all such applications, citing concerns over market manipulation and investor protection.
Cointelegraph later edited its initial tweet as “according to rumors” and then deleted it completely. Cointelegraph apologized in its last tweet and stated that it was conducting an internal investigation and would publish an update within 3 hours.
According to this screenshot, whose accuracy has not been verified, a long position of $50,000 was opened in Bitcoin at $27,774 using 50x leverage. This position was closed at $30,274 and a profit of $2,250,800 was made. However, it is not clear whether Rollbit shared this screenshot as a joke or as a serious accusation. The “This you” phrase used by Rollbit when sharing the screenshot suggests that it may be more of a humorous approach.
The price of bitcoin jumped from around $27,600 to $29,800 in a matter of minutes, before falling back to $28,000 as the truth came out. The spike was also fueled by high leverage and low liquidity in the crypto market, which amplified the price movement. The SEC has not approved any bitcoin ETFs so far, despite receiving several applications from various firms, including VanEck, Fidelity, and WisdomTree. The regulator has repeatedly expressed concerns about the risks of fraud and manipulation in the crypto market, and has delayed or rejected previous proposals.
A bitcoin ETF would allow investors to gain exposure to the cryptocurrency without having to buy or store it directly. It would also provide more regulatory oversight and transparency for the crypto industry. Many analysts believe that a bitcoin ETF would boost the adoption and legitimacy of bitcoin, and drive its price higher.
