Social media speculation that the fund had been authorized led to a sharp increase in the value of the most valuable cryptocurrency in the world.
BlackRock said on Monday that the SEC was still reviewing its application for a spot bitcoin exchange-traded fund, despite the fact that the price of the biggest cryptocurrency in the world had risen on speculations that the fund had been authorized.
A representative for BlackRock told The Block that the SEC is currently reviewing the iShares Bitcoin application. U.S. spot bitcoin ETF approval by the SEC is still pending.
After rumors spread on X that the fund had been authorized early Monday morning in the United States, the price of bitcoin jumped to within striking distance of $30,000. Since then, it has dropped from that high and is now trading at $28,003, per CoinGecko.
A representative from the SEC did not immediately reply to The Block’s request for comment. It appears that the review processes for proposed spot bitcoin ETFs from major players like BlackRock, Invesco, Valkyrie, and Fidelity will be delayed by at least another month after the regulator announced last month that it was instituting additional proceedings to determine whether the ETFs should be approved or disapproved.
The speculation on Monday followed an SEC announcement that it would not challenge a judge’s decision from August that it reassess Grayscale Investments’ application to transform its flagship GBTC fund into a spot bitcoin ETF.
While the market is waiting with bated breath for the first spot bitcoin ETF to be approved, there are still many obstacles that must be overcome. The SEC’s decision not to appeal the Grayscale case is not indicative of the agency’s intent to approve a similar transaction.
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