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FameEX Hot Topics | SEC Releases Significant Advisory Following False Bitcoin ETF Speculation

2023-10-17 16:38:55

In the wake of misleading reports claiming that the U.S. Securities and Exchange Commission (SEC) had granted approval for a spot Bitcoin ETF from BlackRock, the SEC swiftly responded with a resounding reminder about the unreliability of online information. After a turbulent day marked by cryptocurrency-related misinformation, the SEC took to social media to issue a stern warning to the public.

The agency's message was clear: "Be cautious about the information you encounter on the internet. The most dependable source of information about the SEC is the SEC itself." This cautionary note emerged in response to inaccurate reports that circulated, suggesting that the SEC had greenlit a spot Bitcoin ETF offered by BlackRock's iShares division. These reports triggered a frenzy of activity within the cryptocurrency market.

The storm began with the cryptocurrency-focused media outlet Cointelegraph, which published the purported news of the SEC's approval. This claim quickly gained momentum on various social media platforms, contributing to the confusion. However, the actual situation painted a very different picture. BlackRock promptly refuted the rumors, confirming that its ETF application remained under regulatory review and had not received approval from the SEC.

Cointelegraph, in response to the growing criticism and backlash, subsequently amended their post by inserting the word "reportedly." This adjustment, though belated, did little to quell the frustration of readers who questioned the media outlet's journalistic integrity and decision-making process in disseminating such critical information. Despite issuing an apology for the error and publishing a detailed report on the incident, the cryptocurrency community continued to express anger and dissatisfaction.

The fallout from this misinformation contributed to approximately $182.5 million in liquidations within the cryptocurrency market over the past 24 hours. The sharp price swings and volatility showcased the market's susceptibility to fake news and speculative reports. One pressing question on the minds of many investors is whether this incident will impact the chances of approval for a Bitcoin ETF. While the misinformation saga had a notable impact on Bitcoin's price, causing a temporary surge to surpass $30,000 before an 8% decline, experts maintain an overall positive sentiment.

Bloomberg analysts, for example, project a 90% probability of a spot Bitcoin ETF receiving approval by January 10, 2024. This suggests that despite the challenges posed by misinformation and market volatility, the prospect of a Bitcoin ETF approval remains within reach, subject to regulatory scrutiny and accurate reporting in the future.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.

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