On Monday, Bitcoin and related stocks such as Grayscale Bitcoin Trust and Marathon Digital (NASDAQ:MARA) Holdings experienced a rapid rise in value due to market speculation. The speculation was driven by a report published by Cointelegraph, which suggested that the Securities and Exchange Commission (SEC) had approved BlackRock (NYSE:BLK)'s Bitcoin-based iShares Exchange-Traded Fund (ETF). The report led to an anticipatory surge in the market, with Bitcoin peaking at an 8.4% increase, Grayscale at 16.2%, and Marathon at 16%.
However, the gains were short-lived as BlackRock debunked the report later in the day. This caused a sharp decline in the value of these assets. By the afternoon, Bitcoin was up by only 4%, Grayscale by 2.1%, and Marathon by 7%.
The incorrect report had fueled investors' anticipation of gaining direct access to Bitcoin through traditional brokerages via BlackRock's Bitcoin ETF. Such a development would mark a significant shift in the market, contrasting with existing Bitcoin funds like Grayscale that are either traditional mutual funds or ETFs tethered to the price fluctuation of Bitcoin futures.
The market continues to face uncertainty due to the SEC's ongoing indecision regarding Bitcoin ETFs, which prevents investors from having direct access to Bitcoin through traditional brokerage channels. This uncertainty persists despite Monday's short-lived speculative surge and subsequent decline in Bitcoin and related stocks.
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