The U.S. Securities and Exchange Commission (SEC) has yet to grant official approval for a Bitcoin ETF traded in the spot market, but whispers circulating on platform X have ignited extensive speculation that the regulatory authority has recently sanctioned iShares, a pioneering Bitcoin spot Exchange-Traded Fund (ETF) introduced by BlackRock. This unverified development, tied to the long-anticipated financial giant’s spot BTC ETF, initially propelled Bitcoin’s valuation toward the $30,000 mark. Nevertheless, this surge was transient, as its worth retreated to approximately $28,000, giving rise to a wave of market fluctuations shrouded in uncertainty.
Bitcoin Slides from its $30,000 Pinnacle
It was widely anticipated that the U.S. Securities and Exchange Commission (SEC) would face significant challenges when reviewing the proposal for a spot Bitcoin ETF from BlackRock, a financial titan. Recent speculations on platform X indicated that a historic moment was on the horizon, with reports suggesting that the SEC had granted approval for a Bitcoin spot ETF offered by iShares, a BlackRock division focused on exchange-traded funds.
Neither the SEC’s official channels nor those of Nasdaq have provided any substantiating evidence to support these claims. In an unequivocal response, BlackRock itself issued a statement to dispel the rumors, affirming that the news was unfounded and emphatically stating that the “ETF REMAINS UNDER SCRUTINY BY THE SEC!”
This scenario underscores the market’s susceptibility to news, particularly when it pertains to ETF advancements. Eric Balchunas, a seasoned ETF analyst at Bloomberg, identified Cointelegraph as the initial source of the erroneous report. The news rapidly gained traction and was further disseminate through coverage from Reuters and various other media outlets. This sequence of events generated a substantial, albeit misinformed, market reaction, propelling Bitcoin’s price toward the $30,000 threshold in a brief span.
Bitcoin Experiences an Unplanned Surge in Liquidation
Recent conjecture about the potential approval of a Bitcoin spot ETF, as highlighted in a Cointelegraph report, has triggered a remarkable market response, driving Bitcoin to reach heights of $30,000 within the past hour. This unanticipated upswing has sparked a surge in liquidation, amounting to nearly $100 million. Notably, a substantial proportion of these liquidations, estimated to be in excess of $70 million, comprised short positions. These statistics imply that the suddenness of the ETF-related news caught numerous traders off guard, prompting a swift market repositioning and, consequently, a squeeze on short positions.
In June, BlackRock’s iShares division, a juggernaut in the realm of fund management, submitted formal documents to the U.S. Securities and Exchange Commission (SEC), proposing the creation of a Bitcoin spot ETF. The intended entity, known as the iShares Bitcoin Trust, intends to primarily hold Bitcoin under the guardianship of a trustee representing the Trust, as detailed in the submission. The documents identify the cryptocurrency exchange Coinbase as the designated custodian.