**Bitcoin Rises Sharply Before Quickly Giving Up Gains**
Bitcoin experienced a sudden surge on Monday, only to lose nearly all its gains after asset manager BlackRock refuted a report that regulators had approved its crypto investment product. The cryptocurrency, known for its price volatility, was trading up 3.82% at $28,211 after briefly reaching as high as 10% to hit $29,900, its highest level since August.
**Conflicting Reports Lead to Volatility in Crypto Markets**
Crypto news outlet Coin Telegraph initially reported that the US Securities and Exchange Commission (SEC) had given the green light to major asset manager BlackRock for a spot bitcoin exchange-traded fund (ETF). However, the story was later retracted, causing Bitcoin’s value to plummet after a Fox Business reporter stated on a social media platform that BlackRock had denied the report.
BlackRock later confirmed to Reuters that its application for the iShares Bitcoin ETP was still under review by the SEC. Sources close to the SEC corroborated this, confirming that the application was still pending. “Crypto markets have just shown how sensitive they are to any potential good news, with their premature rally today on rumors of the approval of a spot bitcoin ETF,” commented Ben Laidler, global markets strategist at eToro.
**Coin Telegraph Issues Apology and promising Transparency in Investigation**
As the situation unfolded, Coin Telegraph issued an apology for the dissemination of inaccurate information, stating that an internal investigation was underway. The news outlet pledged transparency and promised to share the findings within three hours while also deleting its initial post.
**Awaiting Regulatory Decisions on Spot Bitcoin ETFs**
The cryptocurrency markets have anxiously awaited news on several pending spot bitcoin ETF applications. Approval of these applications is widely anticipated to boost investment in the sector. However, the SEC has consistently denied all spot bitcoin ETF applications, citing the failure of applicants to demonstrate the ability to protect investors from market manipulation.
**Impacts on Bitcoin Market and Upcoming SEC Decision**
Joseph Edwards, head of research at London crypto firm Enigma Securities, noted that the exaggerated market response to the BlackRock news illustrates the bitcoin market’s intense focus on the impending spot ETF decisions. Lucas Kiely, chief investment officer at Yield App, described Monday’s events as a “false alarm” but acknowledged it as a “good dress rehearsal” for when the SEC makes its final ruling on the applications.
The upcoming decision has sparked substantial headline risk and market volatility. Reuters previously reported on October 13 that the SEC would not challenge a court ruling that found it in error for rejecting an application from Grayscale Investments to establish a spot bitcoin ETF. The District of Columbia Court of Appeals is expected to issue a mandate within the next week, instructing the SEC to reevaluate Grayscale’s application. This development has been closely monitored by the cryptocurrency industry.
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