SEC Approves 11 Bitcoin ETFs in a Chaotic Announcement
Yesterday, the Securities and Exchange Commission (SEC) approved 11 spot bitcoin exchange-traded funds (ETFs) for trading. However, the approval announcement was filled with confusion and unexpected twists. It all started when the SEC’s Twitter account announced the approval, only to delete the tweet minutes later, claiming that the account had been compromised. This led to speculation and uncertainty among traders and experts.
Crypto trader Tree of Alpha expressed doubt about the authenticity of the announcement, while Gabriel Shapiro, general counsel at Delphi Labs, criticized SEC Chair Gary Gensler and stated that trust in the agency has been lost.
A Look at the Unraveling of Events
Day 1: The SEC’s Twitter account falsely announced the approval of bitcoin ETFs before admitting that it was compromised. This caused confusion and frustration among market participants.
Day 2: Fidelity’s trading app hinted at imminent approval by displaying some spot bitcoin ETFs. However, moments later, the Cboe exchange announced the withdrawal of its acceleration requests for listing these ETFs. This was followed by sudden approval of all spot bitcoin ETFs, although doubts arose due to an unconventional document on the SEC website.
The Final Moments
After several hours of uncertainty, it was confirmed that all 11 spot bitcoin ETFs had indeed been approved. However, SEC Chair Gensler made it clear that this did not imply endorsement of bitcoin as an asset class. Commissioner Hester Pierce criticized the SEC’s actions and highlighted their negative impact on reputation and investor confidence.
Hot Take: SEC’s Missteps and Loss of Trust
The SEC’s handling of the bitcoin ETF approval process was marred by confusion, contradictory statements, and a compromised Twitter account. This series of missteps has raised concerns about the agency’s competence and trustworthiness. Traders and industry experts have expressed disappointment and skepticism, emphasizing the need for transparency and reliable communication from regulatory bodies.
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