A fake breaking news story about the approval of the first spot-based Bitcoin ETF triggered a significant rally in the cryptocurrency markets. According to BlackRock CEO Larry Fink, the price recovery underscores that investors have discovered Bitcoin as an alternative to traditional "Safe Haven" assets like gold.
The chaos began when a now-deleted post on the crypto news site Cointelegraph falsely claimed that the SEC had granted approval to BlackRock for their iShares Bitcoin spot ETF. The misinformation quickly spread across various social media and news platforms, including the financial publication Reuters. Within minutes, the price of Bitcoin surged by nearly 10%. Fink sees this as further evidence of pent-up interest in crypto assets, as he revealed in an interview with FOX Business.
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ETF false report from an anonymous Telegram user
It later turned out that the breaking news came from a Telegram message from an anonymous user. The now-deleted account cited the Bloomberg Terminal as the source. In a rush to cover the news first, a social media manager posted a tweet without verifying the actual source. Shortly thereafter, the headline also appeared on Reuters. Meanwhile, Bitcoin's price increased by +7% in just five minutes.
However, some skeptics questioned the breaking news early on until the SEC refuted the story in a statement to FOX Business. Cointelegraph deleted the original tweet and issued an extensive blog post apology. Whether it was a false report or not, BlackRock CEO Larry Fink interpreted the Bitcoin rally as a clear establishment of the digital asset as a safe haven.
Bitcoin rally: Flight to quality
While the CEO of the world's largest asset manager did not comment on the current status of the ETF application, he acknowledged the undeniable demand for Bitcoin as an alternative investment. Fink stated in his conversation with FOX that part of the rally goes beyond mere rumor. Bitcoin is increasingly seen as a hedge in a volatile world. Events like the conflict in Israel and global terrorism have prompted investors to seek quality.
Such a scenario, known as "Flight to Quality," occurs when investors shift their asset allocation from riskier investments to safer ones. In general, investors consider assets like bonds or gold as safe havens. Fink reiterated, however, that "digital gold" - Bitcoin - also falls into this category. BlackRock is hearing from clients worldwide about the legitimacy of digital assets. The demand for Bitcoin is also driven by global uncertainty, according to Fink.
