The SEC clarified its stance on Bitcoin ETFs after its X account was allegedly compromised, leading to a false post about the approval of Bitcoin spot ETFs. SEC Chair Gary Gensler debunked the misinformation, confirming no approval for spot Bitcoin ETFs. The unauthorized tweet wasn’t from the SEC or its staff. The agency acknowledged unauthorized access, terminated the X account, and committed to a law enforcement investigation.
Bitcoin‘s price briefly surged over 2% and currently stands at around $45,840 after the false post. Cryptocurrencies were top-performing ETFs in 2023. Expectations were high for the SEC to approve a spot Bitcoin ETF, with a decision due by January 10 for applications from ARK Investment Management and 21Shares.
In response, BlackRock and Ark Investment Management reduced fees for their Bitcoin ETF proposals. BlackRock’s iShares ETF fee is now 0.25%, and Ark’s ETF with 21Shares will have a fee of 0.21%.
While the SEC approved a bitcoin futures ETF in 2021, it remains cautious about direct cryptocurrency investments, citing concerns about monitoring spot markets for fraud and manipulation. Last year, a federal judge criticized the SEC’s denial of Grayscale Investments’ bitcoin spot ETF application.
Susannah Streeter of Hargreaves Lansdown highlighted the “pump and dump” nature of crypto scams, urging caution among investors due to the volatile crypto market. She advised speculators to approach crypto with care, using funds they can afford to lose and keeping crypto investments on the fringes of diversified portfolios.
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