Bitcoin (BTC) experienced a sudden surge to $30,000, only to plummet just as quickly, after rumors circulated that the Securities and Exchange Commission (SEC) had given its approval for Blackrock’s iShares Bitcoin spot ETF.

The speculation began when Reuters featured a headline stating, “Breaking: BTC Prices Surge on Rumors of Bitcoin ETF Approval.” The cryptocurrency community eagerly anticipated the SEC’s decision, which could have marked a significant milestone for the cryptocurrency market. However, this surge was based on unverified information, as the SEC’s official website did not confirm the approval of a spot Bitcoin ETF at the time.

Swift BTC Price Reversal as Truth Emerges

Within minutes of the surge, Bloomberg analyst James Seyffart discredited the information, stating, “This is fake news; I can’t find anything that would confirm this at the moment. BlackRock has just confirmed to a FOX reporter that this is false; their application is still under review.”

Further affirming this standpoint, renowned Fox Business journalist Eleanor Terrett tweeted, “BlackRock has personally confirmed to me that this information is entirely false. Their application remains in the review stage.”

These revelations promptly sent Bitcoin crashing back to $28,102. However, interestingly, even before the false rumors emerged, Bitcoin had been showing signs of strength. Earlier on Monday, Bitcoin managed to break the $27,250 resistance and surge all the way to $27,980 before pausing briefly.

Spot Bitcoin ETF Face Challenges

BlackRock’s iShares unit submitted paperwork to the SEC in mid-June for the establishment of a spot Bitcoin ETF. However, the SEC has repeatedly rejected multiple attempts by various fund companies to launch such an ETF.

Notably A spot Bitcoin ETF would make it easier for investors to trade Bitcoin without the complexities of self-custody, potentially marking a significant moment for the mainstream adoption of cryptocurrencies.

The recent legal developments and proposals for Bitcoin ETFs, particularly in the United States, have generated excitement in the crypto space. Notably, the recent ruling by the U.S. Court of Appeals in Washington D.C. in favor of Grayscale’s attempt to overrule the SEC’s denial of their earlier Bitcoin ETF request has ignited optimism that the said product could soon be approved attracting a wall of money into the crypto space.

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Newton Mbogo is a crypto and DeFi specialist. He has a B.A Hons in Law from Kabarak University, where he studied complex economic, legal, and ethical theory relevant to the FinTech landscape. Newton has a particular interest in decentralization and privacy blockchains, as they directly relate to our human rights and flourishing.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.