SEC approval of Bitcoin ETF becomes controversial amid X hack

The U.S. Securities and Exchange Commission (SEC) said its post about bitcoin exchange-traded funds (ETF) approval was fake. It claimed someone hacked into the SEC’s X Twitter account which they deleted afterward.

An SEC spokesperson told CNBC that the SEC or its staff did not post or approve the tweet about bitcoin ETFs. The fake social media post said that bitcoin exchange-traded funds (ETFs) could be bought and sold.

The @SECGov X account was compromised, and an unauthorized post was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.
— U.S. Securities and Exchange Commission (@SECGov) January 9, 2024

After the fake post, the price of Bitcoin briefly went through the highest points. But it quickly fell below $46,000. Later, an SEC spokesperson said they discovered that someone hacked into their X account for a short time just after 4 p.m. ET without permission.

A spokesperson said the SEC will work with law enforcement and our partners across the government to investigate the matter and make the next steps relating to the unauthorized access and any misconduct that may have been involved.

BREAKING: Securities lawyers tell FOX Business the SEC "will have to investigate itself for market manipulation" following the hacked #Bitcoin ETF approval post.
— Bitcoin Magazine (@BitcoinMagazine) January 9, 2024

Click here to read the updates on Bitcoin hitting a 16-month high as tops $35K

There is the possibility that the SEC will decide on Bitcoin ETF approval this week after being against it for years. Over a dozen asset managers have applied to make this kind of fund. Many of them filed new registration statements. The approval is significant as it could attract new investors to Bitcoin.

However, the Bitcoin price has been increasing in the past few months. These ETFs would make it easier for traditional investors to buy Bitcoin without dealing directly with its complexities.

Meanwhile, crypto supporters say that the start of spot bitcoin funds could bring in a new type of investor interested in digital assets. ETFs are a tool that financial planners use all the time. The idea is advisors and investors who find it challenging to secure Bitcoin would willingly purchase cryptocurrency in ETF form.

During his time as chair of the SEC, Gary Gensler has been a vocal opponent of the crypto exchange trade. Gary warned investors on social media to be careful when buying crypto-related goods. However, the SEC filed a court case against Gary last year.

Because the SEC wanted to change a special fund holding bitcoin into an ETF. It led to more rumors that the SEC will soon approve ETF Bitcoin.