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<p class="is-style-lead">The U.S. Securities and Exchange Commission (SEC) may have found additional ammunition to deny future Bitcoin ETF applications following a recent misinformation debacle.</p> 
<p>The latest development involved false reports claiming the SEC’s approval of a Bitcoin ETF from <a href="https://crypto.news/tag/blackrock/" data-type="link" data-id="https://crypto.news/tag/blackrock/">BlackRock,</a> which led to significant market volatility.</p> 
<h2 class="wp-block-heading" id="fake-news-on-bitcoin-etf">Fake news on Bitcoin ETF</h2> 
<p>On Oct. 16, cryptocurrency media outlet Cointelegraph erroneously <a href="https://crypto.news/breaking-btc-prices-surges-on-rumors-of-bitcoin-etf-approval/">reported </a>that the SEC had approved a spot Bitcoin ETF from BlackRock’s iShares.</p> 
<p>The false news was widely circulated on social media, causing Bitcoin’s (<a href="https://crypto.news/price/bitcoin/" data-type="link" data-id="https://crypto.news/price/bitcoin/">BTC</a>) price surge.</p> 
<p> You might also like: <a href="https://crypto.news/crypto-market-sees-massive-pump-and-dump-amid-fake-bitcoin-etf-news/"> Crypto market sees massive ‘pump and dump’ amid fake Bitcoin ETF news </a> </p> 
<p>BlackRock quickly clarified that its ETF application was still under review, but the damage was already done. The incident led to market liquidations worth approximately <a href="https://twitter.com/misterrcrypto/status/1713977858182304246" target="_blank" rel="noopener">$182.5 million</a> in the last 24 hours.</p> 
<p>Cointelegraph subsequently amended its original article, adding the qualifier “reportedly” to its claims. This editorial change sparked criticism and humorous reactions from the public, who questioned the outlet’s journalistic standards and decision-making in sharing such impactful news.</p> 
<p>Even after apologizing and providing a detailed account of the mistake, the outlet couldn’t quell the community’s lingering dissatisfaction and ire.</p> 
<p> You might also like: <a href="https://crypto.news/analyst-suggests-false-bitcoin-etf-news-was-market-manipulation/"> Analyst suggests false Bitcoin ETF news was market manipulation </a> </p> 
<h2 class="wp-block-heading" id="sec-s-warning-and-market-consequences">SEC’s warning and market consequences</h2> 
<p>The SEC responded by issuing a stern warning on social media, stating, “Careful what you read on the internet. The best source of information about the SEC is the SEC.”</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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   <p lang="en" dir="ltr">Careful what you read on the internet. The best source of information about the SEC is the SEC.</p>— U.S. Securities and Exchange Commission (@SECGov) <a href="https://twitter.com/SECGov/status/1714020932509982771?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">October 16, 2023</a>
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<p>The latest wave of misinformation triggered a volatile swing in Bitcoin’s price, initially elevating it from nearly $28,500 to a brief peak above $30,000 before it descended to levels close to $28,000.</p> 
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 <img decoding="async" loading="lazy" width="1420" height="792" src="https://crypto.news/app/uploads/2023/10/BTC_1D_graph_coinmarketcap.jpeg" alt="SEC might cite market manipulation to deny further Bitcoin ETFs - 14" class="wp-image-14205188">
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  BTC 24-hour price chart | Source: <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noopener">CoinMarketCap</a>
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<h2 class="wp-block-heading" id="possible-impact-on-bitcoin-etf-approvals">Possible impact on Bitcoin ETF approvals</h2> 
<p>Observers have noted that such episodes of misinformation could provide the SEC with justifiable grounds to deny future Bitcoin ETF applications.</p> 
<p>The agency could argue that the cryptocurrency market is too susceptible to manipulation, as evidenced by the recent fake news incident.</p> 
<p>This aligns with comments from market analysts like Bitfinexed, who tweeted that the SEC now has a case for market manipulation that could be cited in future Bitcoin ETF denials.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Well, now the SEC knows there was a fake Bitcoin Spot approval market manipulation pump that they can cite in the next spot Bitcoin ETF denial.<br><br>Which helps them deny the applications again because they can show manipulation of the underlying market.<br><br>Great job guys. <a href="https://t.co/1HtZPExJmc" target="_blank">https://t.co/1HtZPExJmc</a></p>— Bitfinex'ed 🔥🐧 Κασσάνδρα 🏺 (@Bitfinexed) <a href="https://twitter.com/Bitfinexed/status/1714110703475298536?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">October 17, 2023</a>
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<p>Despite the setback, experts in the field maintain a positive outlook. Bloomberg analysts, for example, project a 90% chance of a spot Bitcoin ETF approval by early 2024.</p> 
<p>In an <a href="https://www.foxbusiness.com/markets/blackrock-ceo-fink-clarifies-bitcoin-etf-status" target="_blank" rel="noopener">interview </a>with Fox Business, BlackRock CEO Larry Fink expressed that the incident reflects the growing interest and demand for cryptocurrency investments.</p> 
<p>Fink highlighted that his discussions with their worldwide clients show a growing eagerness to invest in cryptocurrencies.</p> 
<p>Looking ahead, he envisions cryptocurrency becoming a crucial asset for investors, especially as a financial refuge in unstable economic conditions.</p> 
<p> Read more: <a href="https://crypto.news/sec-nixes-plans-appeal-grayscale-bitcoin-etf-decision/"> SEC nixes plans to appeal Grayscale Bitcoin ETF decision </a> </p>

SEC might cite market manipulation to deny further Bitcoin ETFs

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