Bitcoin Price Pumps From $28,000 To $30,000 And Back Again In Minutes Unconfirmed Spot BTC ETF Confirmation Rumors

Unconfirmed rumors that the U.S. Securities and Exchange Commission (SEC) has banned asset management giant BlackRock's iShares spot bitcoin exchange-traded fund (ETF) app began circulating on social media, pushing it from under $28,000 to $30,000 in minutes earlier Monday.

Cointelegraph's Twitter account first reported the news in a now-deleted tweet. Then you reposted the same tweet but added the word “as reported” before deleting it.

Twitter users questioned the source.

According to Bloomberg reporter Emily Grafeo, BlackRock said on Monday that the ETF application is still under review.

Shorts piled up as market participants realized there was no credibility behind the iShares Spot Bitcoin ETF approval rumor, sending the price of Bitcoin quickly to the $28,000 level.

That price swings as high as 7.5% and then lowers again within minutes.

Bitcoin market hyperactivity based on social media rumors now highlights how sensitive the cryptocurrency is to the theme of spot ETF applications.

Dozens of major financial institutions, including BlackRock, Vanguard and Fidelity, applied to create Bitcoin ETFs in June.

Meanwhile, late last week, the SEC decided not to appeal its legal loss against Grayscale over the way the digital asset manager shot down its latest Bitcoin ETF app.

This reinforced hope that the agency is preparing itself for Bitcoin ETF approvals.

When will the SEC approve Spot Bitcoin ETFs?

The SEC has rejected dozens of applications for spot bitcoin ETFs in recent years, including from Grayscale and Arc Invest.

The agency questioned the lack of regulation and capacity in the Bitcoin spot markets where ETF prices are generated.

But the pace has changed dramatically in recent months.

Wall Street behemoths like BlackRock never file for an ETF unless they're sure it will get approved.

In fact, the latest spot Bitcoin ETF applications came under the guise of intelligence-sharing agreements that would give the SEC more powers to monitor bitcoin spot markets in the US.

Given the significant influence companies such as BlackRock have over US regulators, analysts expect more Bitcoin ETF approvals in the coming quarters.

As tweeted by crypto analyst Jelle, October 16, 17 and 19 are the second known dates for the SEC to approve various Bitcoin ETF applications that came back in June.

But the agency tends to kick the can down the road until the mid-March 2024 deadline.