The Bitcoin price boom after the false news of SEC approval of ETFs
Last night, a tweet from the SEC’s official Twitter account announced the approval of Bitcoin spot ETFs. The price of Bitcoin immediately surged to a new annual high. However, it quickly became clear that the tweet was fake. The tweet referred generically to Bitcoin ETFs, while the approval actually pertains to specific requests made by individual funds. Additionally, the approved ETFs are collateralized in BTC, which was not mentioned in the tweet. Within minutes, the price of BTC returned to its previous level.
SEC: The true approval of Bitcoin spot ETFs
The real approval is expected to come tonight. The incident from last night may not result in a “sell the news” scenario but could potentially drive up the price of BTC further. Some believe that Bitcoin has the potential to reach $50,000 during this period. If these new ETFs are successful upon their launch on US exchanges, it could lead to even higher prices for BTC. The sell-off may occur later, possibly during the weekend when stock markets are closed.
The SEC’s embarrassment
Yesterday’s incident highlights the embarrassment faced by the SEC. In October, SEC Chairman Gary Gensler had tweeted about enabling multi-factor authentication, yet it was revealed that the SEC’s Twitter account was compromised due to a lack of two-factor authentication. Gensler confirmed the breach and clarified that the SEC has not approved spot bitcoin exchange-traded products. This incident adds to Gensler’s already shaky position as there have been discussions about removing him from his role at the SEC.
The risk of dismissal
Gary Gensler’s tenure as head of the SEC has been marred by losses in lawsuits against crypto companies. The SEC lost cases against XRP and Grayscale, with the latter leading to the approval of Bitcoin spot ETFs. The SEC’s anti-crypto policy and failures have raised concerns about Gensler’s leadership. Yesterday’s incident and the potential success of the approved ETFs may further undermine his position as the head of the agency overseeing financial markets.
Hot Take: SEC’s Fake Tweet Reveals Vulnerabilities and Raises Questions
The recent fake tweet from the SEC announcing the approval of Bitcoin spot ETFs not only caused a temporary price surge but also exposed vulnerabilities in the agency’s social media security practices. The breach of their Twitter account due to a lack of two-factor authentication is embarrassing for an organization responsible for regulating financial markets. This incident adds fuel to the fire in discussions about removing Gary Gensler from his role as SEC Chairman, especially considering the agency’s losses in lawsuits against crypto companies. As the true approval of Bitcoin spot ETFs approaches, it remains to be seen how this incident and Gensler’s leadership will impact future developments in the crypto space.
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