Yesterday, the renowned crypto news outlet, Cointelegraph, sent out a tweet. Citing a source that referenced Bloomberg, they claimed the SEC had greenlit a spot Bitcoin ETF by BlackRock named iShares. In response, Bitcoin’s price skyrocketed, breaking the $30,000 threshold.
But the celebration was short-lived. Within 30 minutes, BlackRock clarified that the iShares Bitcoin ETF application was still pending and that the circulating news was false. Traders were left dismayed as Bitcoin’s value plunged back to $28,100. This rapid fluctuation resulted in the liquidation of approximately 40,000 traders and short positions, amounting to over $170 million. In the aftermath, Cointelegraph launched an internal investigation, pinpointing a journalist who had acted prematurely without verifying the facts.
Ironically, the SEC emerged as the unexpected beneficiary of this debacle. They issued a tongue-in-cheek statement, advising the public not to trust online news blindly and emphasizing that “the most reliable source of information about the SEC is the SEC itself.” Some industry experts speculate that the Commission might leverage this incident to criticize the crypto market’s perceived lawlessness and subsequently deny all pending ETF applications. Others even insinuate that the SEC could have orchestrated the entire fiasco.
