he United States Securities and Exchange Commission (SEC) has not yet granted approval for a spot Bitcoin (BTC) exchange-traded fund (ETF). This news comes after a false tweet suggesting that Bitcoin ETFs had been approved in the country was posted on the SEC's official Twitter account.
SEC Denies Approval for Spot Bitcoin ETF
Despite widespread anticipation, the SEC did not give the green light to the first spot Bitcoin ETF in the country on January 9. SEC Chair Gary Gensler confirmed that the SEC's account had been compromised, and the unauthorized tweet regarding Bitcoin ETFs was false. The SEC has clarified that it has not approved the listing and trading of spot Bitcoin exchange-traded products.
Price Impact on Bitcoin
Following the false tweet, the price of Bitcoin experienced a surge of approximately 2.5% to $47,901. However, it quickly dropped by roughly 7% to $44,701. The incident has sparked speculation about the potential impact on the SEC's decision-making process regarding Bitcoin ETF approvals.
Controversies Surrounding the Tweet
While the SEC denies any involvement in the unauthorized tweet, some community members remain skeptical. They believe it may have been a premature announcement mistakenly sent out. The wording and construction of the post align with the SEC's language, leading to speculation about its authenticity. Furthermore, lawyers and politicians have called for an investigation into the SEC's handling of the situation.
Several United States lawyers and senators have urged Congress to demand an investigation into the SEC's actions. They argue that fraudulent announcements, like the one made on the SEC's social media, can manipulate markets and demand transparency regarding the events that led to the false post.
SEC's Response and Investigation
The SEC has stated that it will collaborate with law enforcement agencies to investigate unauthorized access to its Twitter account. The SEC's account was compromised due to an unidentified individual gaining control over a phone number associated with the @SECGov account through a third party. The account did not have two-factor authentication enabled at the time of the incident.
Despite the Twitter controversy, industry observers believe that the recent incident is unlikely to cause a delay in the decision regarding spot Bitcoin ETFs. The approval is still expected to be announced on January 10, as previously anticipated. However, some speculate that the SEC may use the incident as a reason to slow down the rollout if they intend to delay the process further.