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<\/a><\/div>\nOn Oct. 16, a false report<\/a> published by major crypto-focused media outlet Cointelegraph sent shockwaves through the industry over its claim that the U.S. Securities and Exchange Commission (SEC) had approved BlackRock\u2019s<\/a> application<\/a> for a spot Bitcoin (BTC<\/a>) exchange-traded fund (ETF).<\/p>\n In the wake of this news, BTC\u2019s price surged to over $30,000, only to swiftly retreat to around $28,000 once the misinformation was exposed.<\/p>\n This incident has sparked a flurry of responses and discussions regarding its potential influence on the SEC\u2019s forthcoming decision concerning the numerous spot Bitcoin ETF applications awaiting approval or rejection.<\/p>\n CryptoSlate<\/em> has curated the reactions from major stakeholders in the community below.<\/p>\n Many of those who think the news has hurt the chances of an ETF approval argued<\/a> that the regulator has consistently claimed that the market could be easily manipulated, citing<\/a> the asset\u2019s price movement in their claims.<\/p>\n Over the past decade, the SEC has declined<\/a> the many spot BTC ETF applications it has received because the fund issuers failed to demonstrate sufficient measures to safeguard investors from market manipulation.<\/p>\n According to stakeholders like Adam Cochran, a partner at Cinneamhain Ventures, the fake news gave the financial regulator more ammunition to deny a spot BTC ETF.<\/p>\n Cochran said<\/a>:<\/p>\n \u201c[Cointelegraph] massively just hurt the chances of real ETF approval\u2026 The SEC has literally been looking for any and every excuse to deny it and we just handed them even more ammo.\u201d<\/p>\n<\/blockquote>\n This view was also shared by the editor-at-large for Kraken FX, Pete Rizzo, who said<\/a> the event \u201csets back an etf by at least 6 months.\u201d<\/p>\n \u201cWe aren\u2019t getting that BTC Spot ETF anytime soon, at least not until 2024. One of the reasons the SEC hasn\u2019t approved the ETFs is concerns about market manipulation -and then, this happens,\u201d an X user, Victor commented<\/a>.<\/p>\n However, some community members had a more bullish view of the event, arguing that the reaction that followed the news was evidence of how much the market anticipates approval.<\/p>\n In an Oct. 16 interview with Fox Business, BlackRock CEO Larry Fink said<\/a> the market reaction was \u201can example of the pent-up interest in crypto\u201d and evidence of a \u201cflight to quality.\u201d<\/p>\n Jeff Dorman, the chief investment officer at Arca, a crypto-focused investment management firm, had a more nuanced view. According to him, the SEC cannot cite a \u201crogue media outlet\u201d report as evidence of market manipulation.<\/p>\n Dorman gave the example of how a false report claiming the White House was attacked in 2013 caused hundreds of billions of losses in equities and debt.<\/p>\nThose who think the event has hurt ETF chances<\/h2>\n
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Those who think otherwise<\/h2>\n