SEC Twitter Hack: False Greenlight on Bitcoin ETFs, Gensler Confirms

• SEC Denies Approval of Spot Bitcoin ETF Applications, Debunks Misleading Social Media Post
• Clarifying the Miscommunication
• Future Expectations
• Misleading Tweets
• Impact on Bitcoin Pricing

SEC Denies Approval of Spot Bitcoin ETF Applications, Debunks Misleading Social Media Post

Despite recent social media speculations, the U.S. Securities and Exchange Commission (SEC) has not given the green light to any spot bitcoin ETF applications by Tuesday afternoon. This was clarified by Gary Gensler, the Chair of the SEC, who added that the tweet making such claims was actually a result of a breach in the regulator's social media account.

Clarifying the Miscommunication

Gensler stated on his social media handle that the SEC's account was compromised, and no approval had been granted for the listing and trading of spot Bitcoin$42,260 -0.64% exchange-traded products. An SEC spokesperson also made it clear that the unauthorized tweet about Bitcoin ETFs did not originate from the SEC or its personnel.

Future Expectations

Market participants are still looking forward to an announcement from the SEC about the approval of spot Bitcoin ETF applications. They expect that should the SEC declare a registration statement effective, the information will be posted to the agency's EDGAR database. An agency spokesperson also stated that any Commission 19b-4 orders would also be published in the Federal Register.

Misleading Tweets

The compromised SEC social media account made unauthorized tweets, one of which stated that the SEC had granted approval for Bitcoin ETFs to be listed on all registered national securities exchanges. This tweet which has since been deleted, also suggested that the approved Bitcoin ETFs would undergo continuous surveillance and compliance measures to maintain investor protection.

Impact on Bitcoin Pricing

Bitcoin's price skyrocketed to approximately $48,000 immediately following the social media post, only to tumble nearly 6% to $45,100 when it became clear that the news was inaccurate. This turbulence led to the evaporation of over $50 million worth of leveraged derivatives trading positions within an hour, as reflected in CoinGlass data.

Edited by Jonathan Stoker