Bitcoin ETFs not Approved By SEC, X account Hacked

The crypto community was in for a roller coaster ride on Tuesday, January 9, 2024, when a fake post on the U.S. Securities and Exchange Commission’s (SEC) X account claimed that the regulator had approved spot Bitcoin exchange-traded funds (ETFs) for listing on all registered national securities exchanges. The post, which included a picture of SEC Chair Gary Gensler, sent the price of Bitcoin soaring to nearly $48,000, before crashing back to around $46,000, as the SEC quickly deleted the post and confirmed that its account had been “compromised” and that no such approval had been granted.

This incident added more uncertainty and confusion to the already tense situation surrounding the approval of Bitcoin ETFs in the U.S., which has been eagerly awaited by the crypto industry for years. The SEC has repeatedly rejected or postponed the decision on various proposals for Bitcoin ETFs, citing concerns over market manipulation, investor protection, and regulatory compliance. However, many analysts and experts believe that the SEC is finally ready to give the green light to some of the applications, especially after Canada and Brazil have already launched their own Bitcoin ETFs.

The deadline for the SEC to make a decision on several Bitcoin ETF proposals is this week, and many crypto enthusiasts are hopeful that the regulator will finally approve the first spot Bitcoin ETF in the U.S., which would allow investors to directly buy and sell the cryptocurrency through a regulated and transparent vehicle. A spot Bitcoin ETF would differ from the existing Bitcoin futures ETFs, which track the price of Bitcoin futures contracts rather than the actual Bitcoin. A spot Bitcoin ETF would potentially attract more institutional and retail investors, as well as lower the fees and risks associated with investing in Bitcoin.

However, the hack of the SEC’s X account may have cast a shadow over the prospects of a Bitcoin ETF approval, as it exposed the vulnerability and insecurity of the social media platform, as well as the potential for misinformation and market manipulation. The SEC may also be more cautious and reluctant to approve a Bitcoin ETF in the wake of the hack, as it may want to avoid further controversy and scrutiny. The SEC has not commented on whether the hack will affect its decision on Bitcoin ETFs, but it has said that it is investigating the incident and that it has taken steps to secure its account.

The crypto community is anxiously waiting for the SEC’s announcement on Bitcoin ETFs, which could have a significant impact on the price and adoption of Bitcoin, as well as the development and innovation of the crypto industry. The hack of the SEC’s X account was a reminder of the challenges and risks that the crypto space faces, as well as the need for more regulation and security. Whether the SEC will approve or reject the Bitcoin ETF proposals remains to be seen, but one thing is certain: the crypto world is never boring.