The price of Bitcoin increased last week as a result of rumors that the U.S. Securities and Exchange Commission (SEC) had approved the creation of a spot Bitcoin exchange-traded fund (ETF). BlackRock, on the other hand, swiftly put an end to the rumors after they were dispelled.
The rumors originated from a Cointelegraph article stating the SEC had greenlit a Bitcoin spot ETF. In response, the price of Bitcoin jumped to over $30,000 as cryptocurrency enthusiasts anticipated the ETF would bring more mainstream adoption.
But BlackRock CEO Larry Fink dismissed the rumors in an interview with Fox News. When asked about the speculated Bitcoin ETF approval, Fink responded, “I can’t talk about the specifics of anything. I think it’s just an example of the pent-up interest in crypto. We are hearing from clients around the world about the need for crypto.”
The denial from the head of the world’s largest asset manager caused Bitcoin to retreat back below $28,000. According to reports, traders lost around $190 million from the rumor-driven price swing.
For members of the cryptocurrency community, the incident was damaging to Cointelegraph’s reputation as a reliable news source. It also highlighted the sensitivity of bitcoin’s price to speculation over an ETF approval.
The SEC has repeatedly delayed decisions on several proposed Bitcoin ETFs, hesitant to allow a product tied to the highly volatile asset. While Fink’s comments indicate growing investor demand for cryptocurrency exposure, the timeline for an SEC-approved Bitcoin ETF remains uncertain.
The latest rumor-driven price whipsaw reinforces that cryptocurrencies are still considered speculative assets with prices prone to manipulation. But the interest from major financial institutions like BlackRock suggests the sector continues maturing towards mainstream adoption.
