Bitcoin (BTC) experienced an abrupt drop of 8%, plunging below $27,000, following misinformation about the approval of the iShares Bitcoin ETF.
The cryptocurrency briefly touched above $30,000 after a headline on Reuters, sourced from Benzinga, claimed that the Securities and Exchange Commission (SEC) had given the green light to the ETF application by BlackRock.
These reports, which many believed to be accurate, were later countered by BlackRock's own statements.
BlackRock pours cold water on ETF hype
Fox Business reporter Eleanor Terrett clarified that BlackRock denied the approval claims, stating that their application remains under review. Reports from other news outlets, such as Forbes, have also confirmed that BlackRock's spot Bitcoin ETF application remains in limbo.
CoinTelegraph, which was one of the first media outlets to break the news, later amended its post by adding the word "reportedly" to their claim, a move that drew criticism and humorous jabs from industry watchers. Prominent ETF analyst James Seyffart said, "They edited the tweet to add 'reportedly' hahaha. Guys...you reportedly reported the report!"
The media outlet has already apologized for reporting fake news. However, its mea culpa tweet on the false BlackRock Bitcoin ETF report was met with a tsunami of community comments. The post on X social media platform has generated thousands of reactions within mere minutes.
Now that the dust has settled on this misinformation debacle, Bitcoin is currently trading slightly above $28,000, according to CoinGecko data.
Despite the fact that the bulls have faced a big setback, the approval of a spot Bitcoin ETF is still extremely likely in the near future.
Bloomberg analysts believe there is a 90% likelihood of a spot Bitcoin ETF being approved by Jan. 10, 2024. Recent developments from ARK and 21Shares regarding their spot BTC ETF applications suggest constructive engagements with the U.S. Securities and Exchange Commission (SEC), hinting at an imminent approval.
Moreover, the SEC's decision not to appeal a ruling in favor of Grayscale strengthens the bullish case.