A single errant tweet on October 16th demonstrated just how tightly wound the cryptocurrency industry is around the prospect of a Bitcoin spot ETF in the US.
Keypoints
- Bitcoin’s price jumped from $27,900 to $30,000 after a false report circulated that the SEC had approved a spot Bitcoin ETF.
- The report was posted on Twitter and sparked enough engagement to significantly impact prices before being deleted 30 minutes later.
- Nearly $100 million worth of leveraged positions were liquidated during the price swing – $72 million in shorts and $31 million in longs.
- The SEC website showed no actual ETF approvals. BlackRock confirmed its application is still under review.
- This volatility highlights traders’ anticipation and hopes for a spot Bitcoin ETF, which the SEC has not yet approved.
- The SEC recently declined to appeal its court loss against Grayscale, seen as a positive step for Grayscale converting its Bitcoin Trust (GBTC) to an ETF.
