Gary Gensler addressed the compromise of the SEC’s X social media account, clarifying that the supposed approval of bitcoin ETFs, as announced by the account, was invalid. This false declaration initially inflated bitcoin’s price to $47,897, only to see it plummet to $44,903 after the truth emerged.
Post-market closure on Tuesday, the SEC’s X account, which had prematurely declared the approval, swiftly deleted the misleading tweet—an action attributed to an imposter. Gensler, via his X account, promptly confirmed that no such approval had been granted, highlighting the account breach and reiterating the lack of approval for spot bitcoin exchange-traded products.
The rollercoaster effect on bitcoin’s price, soaring and then dropping before stabilizing above $45,000, mirrored the volatile nature of the situation. Meanwhile, the anticipation for a bitcoin ETF has been steadily growing, with multiple applicants, including BlackRock, VanEck, ARK 21Shares, and Fidelity, vying for approval, divulging details about their fee structures.
Investors have long anticipated the SEC’s approval of various bitcoin ETFs for trading on US exchanges. Amid this expectation, the regulator faces a January 10 deadline to address ARK 21Shares’ appeal regarding its bitcoin ETF application, adding further intrigue to the unfolding narrative.
