BlackRock’s spot ETF was approved, which was an “own error”. Bitcoin rose more than 10% and then gave up most of the gains.

Bitcoin once rose more than 10% to $29,900 on Monday, hitting its highest level since August, but then gave back most of the gains and finally closed up more than 4% to $28,066.25. Cointelelgraph, a well-known media outlet in the field of cryptocurrency, posted earlier on Monday that the U.S. Securities and Exchange Commission (SEC) has approved the listing application of global asset management giant BlackRock (BLK.US) for a spot Bitcoin ETF.

However, the mainstream media in the United States later posted that BlackRock confirmed that the news published by Cointelegraph was false and that their application was still under evaluation by the SEC. This caused Bitcoin prices to plummet and then plummet.

Cointelegraph has since issued an apology for spreading inaccurate information about the BlackRock Bitcoin ETF and deleted the original post. The outlet also said that an internal investigation is currently underway, stressing that it is committed to information transparency and will share the findings with the public within three hours of completion.

Ben Laidler, global market strategist at multi-asset investment platform eToro, said: “This dynamic in the crypto market shows that it is very sensitive to any potential good news. Rumors about the approval of a spot Bitcoin ETF led to the crypto market’s rally earlier today.”

The crypto market has been awaiting news of the approval of a spot Bitcoin ETF, which would allow the market to attract billions of dollars in investment. Joseph Edwards, director of research at London-based cryptocurrency firm Enigma Securities, said: “This shows how paranoid the Bitcoin market is about the upcoming launch of a spot Bitcoin ETF.”

Lucas Kiely, chief investment officer of YieldApp, said that although the SEC’s approval of BlackRock’s Spot Bitcoin ETF for listing was a “false alarm,” it was also “a good rehearsal” for the regulator to make a final decision on the application. "The overall risk is creating a lot of volatility ahead of the SEC announcement, and everyone is trying to get ahead of this decision," he said.

It is reported that at the end of August, a panel of three judges from the Washington, D.C. Court of Appeals overturned the SEC's rejection of the cryptocurrency fund Grayscale Investments' application to launch the first Bitcoin spot ETF in the United States. The ruling is a breakthrough moment for crypto-asset investors and a setback for the SEC, which has been trying to clamp down on the industry. There were reports recently that the SEC would not appeal the court’s ruling.

Currently, in addition to Grayscale, companies applying for spot Bitcoin ETFs include BlackRock, Fidelity and Invesco. Some analysts said that given the U.S. court ruling at the end of August, the recent number of applications for spot Bitcoin ETFs, and the SEC’s contact with applicants, it seems inevitable that spot Bitcoin ETFs will now be approved.