UPDATE: After the original story was published, BlackRock denied rumors, stating that the US regulatory commission did not grant permission for the creation of the first spot Bitcoin ETF.

The much-anticipated approval of the iShares Bitcoin ETF may soon become a reality. A tweet from Bloomberg analyst Eric Balchunas cited Reuters as indicating that the US Securities and Exchange Commission (SEC) is nearing a green light for the financial product. While still awaiting official confirmation, this news has already stirred the cryptocurrency landscape, potentially paving the way for increased institutional investment in Bitcoin.

SEC to Approve First Spot Bitcoin ETF

For years, the idea of a Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term ETF has captured the imagination and interest of investors. Exchange-traded funds (ETFs) allow individuals to invest in an asset without owning it directly. In this context, the iShares Bitcoin ETF would give investors a convenient regulated way to gain exposure to Bitcoin's price changes without the need to own the cryptocurrency.

The original tip-off about the SEC's pending approval came from Benzinga, a financial news outlet. Balchunas later corroborated this by stating that it was also a headline on the Reuters terminal, thereby adding more weight to the claim. However, while Reuters is a trusted source, the SEC has yet to make an official announcement.

I just wonder if this is the news from Friday that Reuters broke that was SEC no going to appeal Grayscale being converted into approval news. Again, trying to 100% confirm this..

— Eric Balchunas (@EricBalchunas) October 16, 2023

The approval of this ETF could represent a watershed moment for institutional investors, who currently face various obstacles in investing in cryptocurrencies. Regulatory challenges and custody issues have historically deterred this sector. The ETF could provide a safer, more streamlined avenue for these investors, potentially stabilizing the market and boosting liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term.

However, the cryptocurrency market is infamous for its volatility, often driven by rumors and speculative news. As such, the prudent approach would be to wait for an official announcement from the SEC.

Bitcoin Price Goes Up

In response to the unconfirmed news, Bitcoin's price rose by over 10% on Monday afternoon, breaking the $28,000 level.

“The iShares Bitcoin spot ETF will be approved by US regulators, according to unconfirmed SEC filings. Bitcoin is gaining more than 10% following this news,” commented XTB in a note.