Fake news on BlackRock ETF drives up both the price of Bitcoin and the demand for accurate reporting
Bitcoin yesterday surged around 7% in just 10 minutes on the rumour of the BlackRock spot ETF being approved by the US Securities and Exchange Commission, the SEC.
Cointelegraph posted on X.com – formerly Twitter – that the $9 trillion asset manager had had its highly-anticipated exchange-traded fund approved, and there was an immediate spike in the price of the world’s largest and original cryptocurrency.
The publication has since apologised for the misinformation and had vowed to launch an investigation into the wildly inaccurate reporting.
Spot ETFs invest directly in underlying assets, typically stocks or bonds, at the current market price (spot price). They aim to replicate the performance of a specific index or asset class by holding a portfolio of the actual securities that make up the index.
Seven firms, including some of the biggest instituiontal investors — BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise and Valkyrie Digital Assets — have published ETF applications on the Federal Register.
The SEC was scheduled to rule on all seven applications by September 4. However, the regulator postponed by 45 days meaning the seven firms will now have to wait until mid-October for a decision.
As I have mentioned previously in City PM, I believe that Bitcoin ETFs are an inevitability; they’re coming I think, and maybe sooner than many expect. But they haven’t been approved quite yet.
For me, there are two clear takeaways from the Cointelegraph fake news scandal.
First, Bitcoin acceptance and price is likely to take off like never before when/if spot ETFs are approved by the US financial regulator. This was clearly seen on Monday afternoon’s price chart when the rumour broke on social media.
Should it happen, which I am confident it will, it would be a landmark moment for Bitcoin. The approval by the financial regulator of the world’s largest economy of this spot ETF would show that Bitcoin is, without any question, part of the global mainstream financial system.
Second, as this digital frontier continues to grow, the importance of accuracy and accountability in crypto reporting cannot be overstated.
In an ecosystem characterised by decentralisation and anonymity, these two pillars serve as the bedrock for trust, transparency, and long-term sustainability.
Cryptocurrency markets are highly volatile, making investors and traders particularly vulnerable to misinformation and market manipulation.
Accurate reporting ensures that investors can make informed decisions, reducing the likelihood of falling victim to fraudulent schemes and pump-and-dump schemes. A lack of proper information can lead to significant financial losses, eroding trust and confidence in the entire crypto ecosystem.
Also, in order to promote the legitimacy and mainstream adoption of cryptocurrencies, regulatory bodies worldwide are increasingly scrutinising the space. Fact-checked reporting is essential for both companies operating in the crypto industry and the government agencies overseeing them. Proper reporting practices help ensure compliance with tax regulations, anti-money laundering (AML) laws, and other legal requirements, thereby reducing the risk of regulatory crackdowns and legal challenges.
It’s clear that for cryptocurrencies to gain broader acceptance, they need to be seen as credible financial assets and this can come through market stability is critical for the long-term success of any asset class.
Stable markets attract a wider range of investors, from retail to institutional, who are more likely to engage in responsible and sustainable trading.
Whether you are a crypto enthusiast or a casual observer, the call for accurate and accountable reporting should resonate as a shared goal for all those vested in the future of digital finance.