Amid a chaotic trading day intensified by misinformation, the U.S. Securities and Exchange Commission (SEC) issued a clear caution on social media. “Careful what you read on the internet. The best source of information about the SEC is the SEC,” the agency advised, following false reports that it had greenlit a Bitcoin ETF from BlackRock’s iShares. This narrative led to significant market unrest.
The confusion began with Cointelegraph, a leading cryptocurrency media platform, announcing the supposed SEC approval. This news rapidly spread across social networks. However, the actual situation was quite contrary. BlackRock intervened to clarify that its ETF submission was still under analysis. Cointelegraph amended its article, incorporating the term “reportedly,” which ignited humor and criticism regarding its journalistic standards and the hastiness in broadcasting such pivotal news.
The outlet’s mistake had real-world impacts, contributing to approximately $182.5 million in trade liquidations within a day. Bitcoin’s value also experienced a rollercoaster ride, soaring beyond $30,000 and diving by 8%. Analysts and market observers, including Bitfinexed, have underscored the serious aftermath of such misinformation. They warn that these instances could provide a foundation for the SEC to reject upcoming Bitcoin ETF proposals.
Despite these setbacks, expert insight in the industry continues to lean towards optimism. Notably, Bloomberg analysts are forecasting a 90% chance of the SEC approving a spot Bitcoin ETF by January 10, 2024, a sentiment that indicates enduring confidence in the cryptocurrency’s potential.
BlackRock’s CEO, Larry Fink, discussed the fiasco in a Fox Business interview, interpreting it as a sign of the growing curiosity in cryptocurrency investments. He highlighted the global escalating demand and excitement among investors based on dialogues with BlackRock’s clientele. For the future, Fink envisions cryptocurrency becoming a crucial part of investment portfolios, especially as a buffer in unstable economic climates.
