Unconfirmed rumors of BlackRock’s Bitcoin ETF send markets into turmoil, while SEC delays decision.
The U.S. Securities and Exchange Commission (SEC) is yet to approve the iShares Bitcoin ETF, despite reports to the contrary. This is in keeping with the SEC’s slow and cautious approach to approving cryptocurrency-related products, which has been a source of frustration for many investors. It remains to be seen when, or if, the SEC will ultimately approve the iShares Bitcoin ETF.
The reports of the SEC’s approval of the iShares Bitcoin ETF originated from major news outlets, such as Bloomberg and Cointelegraph. However, the SEC’s website has not yet been updated to reflect any such approval, and CryptoTVPlus has not been able to independently verify the reports
Following attempts to ratify the information, there have been several reports of the iShares Bitcoin ETF approval news as ‘fake’. Eleanor Terrett, Fox reporter alleges that her sources at BlackRock confirmed the approval to be false.
After the report from major news outlets, Adam Cochran on X (formerly Twitter), posted a tweet saying that the rumors might massively affect the chances of real ETF approval, or lead to possible scams.
Another user on X (formerly Twitter), posted that the odds of a real Bitcoin ETF approval has gone down from 90% to 15%.
The SEC had delayed its verdict on multiple proposed rule changes, including those from Fidelity (Wise Origin), VanEck, WisdomTree, and Invesco. These firms aimed to introduce a spot Bitcoin ETF via the Cboe BZX Exchange.
The regulator had also postponed decisions on Valkyrie Investments and BlackRock (iShares) that aim to offer ETFs via Nasdaq, along with Bitwise, which plans to launch its ETF via NYSE Arca—the SEC had set most of these decisions for Oct. 17, with Valkyrie set for Oct. 19 and Bitwise scheduled for Oct. 16.
It remained uncertain whether the SEC would further delay its decisions once the set deadlines were met. The past experiences of the companies mentioned above, who had their previous Bitcoin ETF applications rejected by the SEC, cast a shadow over the process. The potential for the SEC to reject the latest series of ETF proposals in October would have initiated a new cycle of applications, approvals, delays, and rejections.
Reportedly, Grayscale’s intent to convert its GBTC fund to an exchange-traded fund has also contributed to general optimism, demonstrating the potential for future approvals.
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