The U.S. Securities and Exchange Commission (SEC) swiftly corrected a misleading announcement about the approval of Bitcoin exchange-traded funds (ETFs) after its social media account was compromised. The unauthorized post on the platform X, formerly known as Twitter, inaccurately stated that Bitcoin ETFs had been approved for listing on national securities exchanges. This misleading information momentarily caused Bitcoin's price to surge, momentarily crossing the $48,000 mark before SEC Chair Gary Gensler clarified the situation.
Gensler, addressing the issue on his personal social media account, stated unequivocally, "The SEC has not approved the listing and trading of spot bitcoin exchange-traded products," dismissing the earlier post as unauthorized. The false announcement had briefly led to a spike in Bitcoin prices, which later settled around $46,150 after the correction.
The security breach raised concerns among politicians and cybersecurity experts. Senator Bill Hagerty, a member of the Senate Banking Committee, expressed the need for accountability and answers from the SEC, similar to the demands placed on public companies in such situations. Brett Callow from cybersecurity firm Emsisoft warned about the potential risks of social media account takeovers, especially in an election year.
The incident has brought to light the ongoing debates and expectations surrounding Bitcoin ETFs. Despite previous rumors and anticipation, including a false report in October suggesting BlackRock's approval for a Bitcoin ETF, the SEC has yet to authorize such products. The uncertainty around Bitcoin ETFs has contributed to fluctuations in the cryptocurrency's value, with investors keenly awaiting a definitive stance from the SEC.
SEC Chair Gensler has maintained a cautious approach towards cryptocurrency during his tenure, emphasizing investor protection. He has previously advised investors to exercise caution with crypto-related products.
The SEC's stance on Bitcoin ETFs remains a subject of significant interest, as the approval of such funds is expected to invite a new wave of investors into the digital asset market. These funds, which track the price of Bitcoin futures, are seen as a potential gateway for financial advisors and investors who have been hesitant to engage directly with the complexities of cryptocurrency.
As the SEC prepares to decide on Bitcoin ETFs, the cryptocurrency community remains watchful. The outcome could mark a significant shift in the accessibility and perception of Bitcoin as a mainstream investment asset.
