BlackRock CEO Larry Fink weighed in on the remarkable controversy that erupted earlier today, when a false report asserted that his company’s application for an iShares Bitcoin Trust ETF had been approved by the Securities and Exchange Commission (SEC). The hoax whipped up a frenzy of excitement on social media that sent Bitcoin’s price soaring by 10%.
“It’s just an example of the pent-up interest in crypto,” Fink said during an appearance on Fox Business. “I think the rally today is about a flight to quality.”
His take is a remarkably positive spin on the day’s events, which were triggered when crypto news publication Cointelegraph tweeted that BlackRock’s eagerly anticipated, much-hyped Bitcoin ETF application had been approved—without citing any source for the claim.
🚨BlackRock has just confirmed to me that this is false. Their application is still under review. https://t.co/XIfIWZ0Ule
Both BlackRock and the SEC debunked the rumor, and Cointelegraph retracted the post—but not before the price of Bitcoin shot up to nearly $30,000 for the first time since July. Ultimately, the world’s top cryptocurrency scraped $29,483 on the rumor, but within 15 minutes had fallen back down below $28,000 once it was disproven.
Bitcoin currently sits at $28,437, according to CoinGecko.
Fink, who said he only found out about the situation hours later due to being “busy all day,” insisted that Monday’s events only proved the global need and desire for a Bitcoin spot ETF—particularly amid ongoing international unrest.
But many others see the situation differently.
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Numerous Bitcoin advocates took to Twitter to mourn Monday’s blunder, fearing it will be wielded by SEC chair Gary Gensler to demonstrate the Bitcoin market’s volatility and the ease with which it can be manipulated. The incident, they said, could dash any hopes of a Bitcoin spot ETF being approved in the United States in the near- to medium-term.
And we just gave this guy the right to disapprove all the Bitcoin ETfs.
Gary Gensler getting ready to deny all the ETFs by citing this fake news incident as evidence of potential market manipulation. #fakenewspic.twitter.com/DVYIdpcVTM
While the SEC has continued to keep its cards close to its chest on BlackRock’s application, the federal regulator did allude to Monday’s events with a single, concise tweet.
Careful what you read on the internet. The best source of information about the SEC is the SEC.
— U.S. Securities and Exchange Commission (@SECGov) October 16, 2023
"Careful what you read on the internet," the SEC wrote. "The best source of information about the SEC is the SEC."
