Despite social media rumors, BlackRock clarified on Monday that the Securities and Exchange Commission (SEC) is still reviewing its application for a spot bitcoin ETF. The surge in the price of the world’s largest cryptocurrency was fueled by false reports circulating on social media, suggesting the fund had already gained approval, media reports said.
A BlackRock spokesperson confirmed to The Block that the iShares Bitcoin application is still in the regulatory review process, and the SEC has not yet approved a spot bitcoin ETF in the U.S.
Sources close to the SEC debunked the false reports, emphasizing that the regulator recently initiated additional proceedings to assess spot bitcoin ETF proposals from major players like BlackRock, Invesco, Valkyrie, and Fidelity.
This move indicates a potential delay in the ongoing review processes, extending the timeline by at least another month. Despite the immediate market reaction with Bitcoin reaching $30,000 following the false approval news, the cryptocurrency has since declined and is currently trading at $28,570, as per CoinGecko.
The Monday rumors surfaced shortly after the SEC announced that it would not appeal an August court ruling instructing it to reconsider Grayscale Investments’ bid to convert its flagship GBTC fund into a spot bitcoin ETF.
However, it’s crucial to note that the SEC’s decision not to appeal the Grayscale case does not automatically signal an intention to approve a spot bitcoin ETF. The industry awaits approval anxiously, but several steps must be taken before the first spot bitcoin ETF enters the market.
