On Monday morning, Bitcoin quickly spiked thousands of dollars, hitting as high as $30,000 on some cryptocurrency exchanges.

Why? Because erroneous reports about the SEC approving BlackRock's iShares Bitcoin ETF spread online. However, those reports turned out to be completely false.

“The iShares Bitcoin ETP application is still under review by the SEC," a BlackRock spokesperson said in a statement to Mashable.

As of this writing, It's unclear exactly where the false report originated. Crypto outlet Cointelegraph issued an apology as it was one of the first sources to share the incorrect information, promising an investigation into the matter.

Senior ETF Analyst for Bloomberg Eric Balchunas, who shared skepticism about the reports from the beginning, appears to have first come across the news on the Bloomberg Terminal from a Bezinga Newswire via Reuters.

This would be far from the first time false crypto news moved the market. For example, crypto investors have previously been duped by fake press releases about major retail chains accepting cryptocurrencies. While the reports were all debunked fairly quickly, the cryptocurrency would spike in price each time.

Bitcoin prices spiked on the news, gaining thousands of dollars and peaking around $30,000. However, as the Bitcoin ETF news was debunked, prices dropped back down to the levels they were prior to the false reports.

Bitcoin prices spikes on the news of a Bitcoin but quickly dropped after the reports were found to be incorrect. Credit: CoinMarketCap

An approval of a Bitcoin ETF would be big news for the crypto industry. Many cryptocurrency advocates believe that it will help legitimize Bitcoin and bring investors back to the market. Cryptocurrency has struggled since last year when numerous stablecoins and crypto lending companies failed. The fall of FTX and the ongoing trial of its founder Sam Bankman-Fried continue to put a spotlight on the unsightliest aspects of crypto.

An ETF, or exchange-traded fund, is a bundle of investments that are traded on the stock market. A Bitcoin ETF would allow retail investors and others to invest in Bitcoin via the stock exchange without owning the blue-chip digital asset.

The SEC has yet to approve any Bitcoin ETF application. It's unclear if or when they will. As BlackRock stated, its application is still under review.