BlackRock later confirmed that “the iShares Bitcoin ETP application is still under review by the SEC”

Bitcoin gained 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 application for a crypto investment product.

Bitcoin, known for its volatility, was last trading 3.82% higher at $28,211, after earlier gaining 10% to $29,900, its highest since August.

Crypto news outlet Coin Telegraph had earlier reported that the U.S. SEC had approved an application by top asset manager BlackRock for a spot bitcoin exchange-traded fund, before later retracting the story.

But bitcoin dropped steeply after a Fox Business reporter said on the social media platform X that BlackRock denied the report.

BlackRock later confirmed to Reuters that “the iShares Bitcoin ETP application is still under review by the SEC.” Sources close to the Securities and Exchange Commission also confirmed that the application is still pending.

Crypto markets have just shown how vulnerable they are to any potential good news, with their premature rally today on rumours of the approval of a spot bitcoin ETF, said Ben Laidler, global markets strategist at eToro.

In a post on X, Coin Telegraph apologized for its earlier post, which it said “led to the dissemination of inaccurate information.”

An internal investigation is currently underway. We are committed to transparency and will share the findings of the investigation with the public once it is concluded within 3 hours, Coin Telegraph added. It also deleted its earlier post.

Crypto markets have been awaiting news on a number of pending spot bitcoin ETF applications, which, if approved, are widely expected to drive investment in the sector. The Securities and Exchange Commission has denied all spot bitcoin ETF applications on the grounds applicants have not shown they can safeguard investors from market manipulation.