Bitcoin Price Skyrockets Due to False Reports on BlackRock's Physical ETF Approval | Comments from the U.S. SEC

Learn how false reports about BlackRock's physical Bitcoin ETF approval led to market chaos and what this means for the future of cryptocurrency investments.

Understand the importance of verified information, market influence, and regulatory focus in a highly volatile ecosystem.

Sudden Surge in BTC Prices Due to "Physical ETF Approval" False Reports

Bitcoin (BTC) experienced a sudden surge in price on October 16, 2023, after false reports claimed that BlackRock's physical Bitcoin ETF had been approved.

The price momentarily soared to around $30,000.

This news was initially published by the globally renowned cryptocurrency media outlet "Cointelegraph" via channel X.

However, it was later confirmed that the news was incorrect. Cointelegraph subsequently amended and removed the related post, issuing an apology article as well.

Physical Bitcoin ETF by BlackRock

While BlackRock's physical Bitcoin ETF has not been approved, the false news was widely spread by various influencers, creating a buzz in the cryptocurrency industry and causing Bitcoin's price to surge.

There are also numerous reports of losses incurred due to stop-loss orders, with media outlets stating that "over $130 million in short positions were liquidated due to this sudden BTC price surge."

Significance of Physical Bitcoin ETF Impact on Cryptocurrency Prices

Even though the reported content turned out to be fake news, the immediate impact on Bitcoin and other major cryptocurrencies' prices was significant, drawing attention in the crypto sector to the "substantial impact of a physical Bitcoin ETF approval on cryptocurrency prices."

BlackRock, with over $10 trillion in assets under management, is the world's largest asset management firm.

The market had already been paying close attention to the news of their physical Bitcoin ETF application, which is why the market reacted so strongly.

If a physical Bitcoin ETF were to actually get approved, an even greater price fluctuation is expected.

This serves as a prime example of the previously noted "cryptocurrency price volatility risk," and regulatory authorities' interpretation of this incident is also under scrutiny.