SEC Issues Warning Following Fake Bitcoin ETF Approval Reports
Bitcoin Spot ETF
Blockchain investors from the retail and institutional sectors follow every update related to Bitcoin spot ETF approval. However, recently fake news about Bitcoin spot ETF approval has made rounds on social media platforms.
On this account, SEC has issued a warning for the investors warning them to be cautious of the information that is available on the internet. The federal agency also noted that people should always confirm with SEC regarding any news associated with SEC.
The federal agency published a warning on social media platforms to warn the investors about the issue. The rumors suggested that SEC has approved Bitcoin spot ETF from BlackRock iShares. The news resulted in causing upheaval among investors. The news arrived from Cointelegraph, a cryptocurrency publishing media firm.
On this account, the news quickly spread across the internet however the news was not confirmed by BlackRock. Officials from the asset management firm informed investors that the ETF application was still being processed at the SEC.
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After some time, Cointelegraph edited the article adding the word ‘reportedly’ in the headline. This resulted in criticism of the publishing company.
Fake Bitcoin ETF Approval News
Following the circulation of false news regarding Bitcoin spot ETF approval, investors rush to make changes in their trading portfolios. The spot market saw around $182.5 million worth of trade liquidations within a day. Bitcoin prices also soared increasing above $30K mark with an increment of 8%.
Bitfinex talked about the overall implication of such rumors claiming that it can lead SEC to halt Bitcoin spot ETF approval. However, investors remain optimistic regarding the spot Bitcoin approval. Bloomberg analysts noted that the probability of SEC approving spot Bitcoin ETFs before 2024 is 90%.
Meanwhile, BlackRock CEO Larry Fink talked about the matter in a recent interview on Fox Business. He said that this is a sign of increasing investment of digital currency investors.
He also talked about the global demand among investors based on feedback from BlackRock clientele. He noted that digital currencies can become a substantial part of investment portfolios for investors during the time of economic uncertainty.
GBTC Discount
Grayscale Bitcoin Trust brought a case against the SEC for delaying the conversion into spot ETF. The shares of GBTC have traded at a discount in contrast to the total price of its Bitcoin holdings.
However, TradingView has shared new projections indicating that the discount for GBTC shares narrowed by 12% since December 2021 to the net asset value (NAV). The report indicates that GBTC has been trading at a discount since February 2021 following a 50% price decrease last year.
However, GBTC has noted that the firm is making preparations to convert GBTC into ETF following SEC approval.
GBTC holds around $16.7 billion in asset under management at present. The firm is among the financial institutions that have applied for a Bitcoin spot ETF application alongside firms such as BlackRock, WisdomTree, and Fidelity among others.
In August, SEC failed to bring an appeal against the court decision on the matter of Grayscale lawsuit that ruled in favor of GBTC. Market analysts claim that Grayscale will start negotiations with SEC to approve its GBTC fund in the upcoming weeks.
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