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Behind Bitcoin’s Rise: Boom or Trap?

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Right or wrong is not important, how to make money is the most important thing

BlockBeats Editor's Note: Last night and this morning, the cryptocurrency market saw a series of positive news, and Bitcoin surged accordingly. However, upon reviewing the market, there was a hint of strangeness in the natural flow, as the market's initial reaction to the positive news was not as intense as expected. From 1am to 3am, positive news about BlackRock kept emerging, but Bitcoin's true surge came from a big bullish candlestick at 6:30am this morning. What happened during this process? Cryptocurrency KOL 2898 (@punk2898) reviewed the trend from last night on their social media platform and gave their own opinions on the market. BlockBeats has compiled their tweets as follows:

Everyone is very happy, and I am also very happy. The currency circle has not been so lively for a long time, but is this a false prosperity or a glamorous trap?

Main content of this article:

Bitcoin Trend Timeline Review

How much money did Blackstone (BlackRock) make in this wave?

SEC EDGAR Access Method

SEC Key Term Explanation

Behind the scenes manipulation and truth

Premise of this article:

All actions are driven by self-interest.

All actions should maximize benefits.

With these two sentences, let's analyze the cause and effect.

1. First, let's look at the timeline

10.16 Date

Blackstone ETF was boosted by fake news, causing Bitcoin to rise to 30,000 and short positions to be liquidated. Although it was publicly revealed that the fake news was created by an intern at Cointelegraph, it did result in significant profits. At this time, Blackstone stated that the ETF is still under review, but they are preparing for a reapplication on the 18th.

10.18 Date

Blackstone has once again submitted an ETF application. At this point, everyone is still unaware (note that it is only an application). Looking at the K-line chart, from 16 to 18, there may be some insider trading going on (which should violate securities laws?). At this time, the mentioned CUSIP and seed financing have already been included in the application (not approved, but submitted).

Here we need a brief explanation of CUSIP and seed financing.

CUSIP (Committee on Uniform Securities Identification Procedures)

CUSIP number is a unique identifier assigned to securities, including stocks and bonds. When a company obtains a CUSIP, it indicates that they are preparing for the issuance and trading of a new security. It is like a "birth certificate" for the security, indicating that it is ready for trading. In this context, iShares (BlackRock) obtaining a CUSIP indicates that they are preparing to launch a new product, possibly a Bitcoin spot ETF.

Potential Seed Financing

Seed funding refers to the initial capital investment in a fund or ETF. When a new ETF is created, it needs initial assets to operate before other investors start buying shares. They may seek cash seed this month, which means BlackRock may invest its own funds in the ETF to launch it. This action can also demonstrate confidence in the product. The timing is earlier than expected, which may indicate BlackRock's eagerness or strategic reasons to launch the ETF as soon as possible.

10.19 Date

The submitted audit has been made public (allowing submission, not approval), and many people are sharing the news without verification. I checked the EDGAR database of the US Securities and Exchange Commission (SEC).

Just to clarify: when a company or fund submits Form N-1A or any other form to the U.S. Securities and Exchange Commission (SEC) on a specific date, it does not necessarily mean that the document will be immediately made available to the public on that day.

Firstly, the submitted documents need to be processed by EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), which is the online public database of the SEC. Once the documents are uploaded and processed through the EDGAR system, they become available for public viewing in the EDGAR database.

This usually takes place within the same day of submission or within the following one or two days, but sometimes it may take longer.

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