Bitcoin gives up gains after BlackRock denies ETF approval report

Bitcoin rose suddenly on Monday, before giving up nearly all its gains, after asset manager BlackRock denied a crypto media report that U.S. regulators had approved its high-profile application for a crypto investment product.

Bitcoin, known for its volatility, was last trading up 3% at $28,000, after earlier rising as much as 10% to $29,900, its highest since August.

Crypto news outlet Coin Telegraph had earlier reported that the U.S. Securities and Exchange Commission had approved an application by major asset manager BlackRock for a spot bitcoin exchange-traded fund.


But bitcoin fell sharply after a Fox Business reporter said on the social media platform X that BlackRock "confirmed to me that this is false. Their application is still under review."

BlackRock later confirmed to Reuters that: "The iShares Bitcoin ETP application is still under review by the SEC."

The SEC did not immediately respond to a request for comment.

Crypto markets have been awaiting news on the BlackRock application, which, if approved, is widely seen as driving investment in the sector.

"The move does show how monomaniacally obsessed the bitcoin market is with the coming spot ETFs," said Joseph Edwards, head of research at London crypto firm Enigma Securities.

"It has been almost the sole catalyst moving Bitcoin specifically for at least six months as opposed to broader crypto markets."