On Monday, Bitcoin and related stocks, including Grayscale Bitcoin Trust and Marathon Digital Holdings (NASDAQ: MARA), witnessed a rapid upswing in their value fueled by market speculation. This speculative fervor was ignited by a report published by Cointelegraph, suggesting that the Securities and Exchange Commission (SEC) had granted approval for BlackRock’s (NYSE: BLK) Bitcoin-based iShares Exchange-Traded Fund (ETF). The news triggered a surge in market expectations, propelling Bitcoin to an 8.4% increase, Grayscale up by 16.2%, and Marathon by 16%.
However, these gains turned out to be short-lived as BlackRock promptly discredited the report later in the day. This debunking sent shockwaves through the market, resulting in a steep drop in the value of these assets. By the afternoon, Bitcoin was up by a modest 4%, Grayscale by 2.1%, and Marathon by 7%.
The false report had stoked investor anticipation of gaining direct access to Bitcoin through traditional brokerages via BlackRock’s Bitcoin ETF. Such a development would have marked a substantial departure from existing Bitcoin funds like Grayscale, which are either traditional mutual funds or ETFs tied to the price fluctuations of Bitcoin futures.
Despite the brief speculative surge and subsequent downturn in Bitcoin and related stocks on Monday, the market still grapples with uncertainty. This uncertainty is primarily driven by the SEC’s ongoing indecision regarding Bitcoin ETFs, which continues to keep investors from securing direct access to Bitcoin through conventional brokerage channels.
