On Monday, BlackRock clarified that its application for a spot Bitcoin ETF was still under review by the U.S. Securities and Exchange Commission (SEC), contrary to rumors circulating on social media. These rumors triggered a surge in the price of Bitcoin, the world’s largest cryptocurrency.
A spokesperson from BlackRock confirmed that the iShares Bitcoin ETF application remains in the regulatory review process. To date, the SEC has not granted approval for a spot Bitcoin ETF in the United States.
Sources close to the SEC corroborated that the reports of approval were unfounded. The regulator recently announced that it would initiate additional proceedings to determine whether proposed spot Bitcoin ETFs from prominent players like BlackRock, Invesco, Valkyrie, and Fidelity should be granted or denied approval. This additional delay suggests that the ongoing review process may extend for at least another month.
Following the false reports of approval, Bitcoin surged towards the $30,000 mark. However, it subsequently retraced from that high and is presently trading at approximately $28,003, according to CoinGecko.
The rumor mill was set in motion shortly after the SEC’s decision not to appeal an August court ruling that mandated a reconsideration of a request from Grayscale Investments to transform its flagship GBTC fund into a spot Bitcoin ETF. Nevertheless, it’s essential to note that the SEC’s decision not to appeal the Grayscale case does not automatically signify its intention to approve a spot Bitcoin ETF.
The cryptocurrency industry is anxiously awaiting the first spot Bitcoin ETF’s approval, but various hurdles and regulatory assessments must be navigated before one can become available to the market.