Crypto markets were rattled earlier when the Securities and Exchange Commission’s official Twitter account posted that the regulatory body had approved several Bitcoin spot exchange-traded funds (ETFs). However, SEC Chairman Gary Gensler has now confirmed the account was compromised and the announcement tweet was unauthorized.
“The @SECGov twitter account was compromised, and an unauthorized tweet was posted,” Gensler stated. “The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.”
Prices for Bitcoin whipsawed on the false news, rising to over $46,800 before sinking back down 3% to below $45,500 when traders began questioning the veracity of the ETF approval claim.
The tweet, which has since been deleted, announced that the SEC greenlit spot ETFs from over a dozen firms including VanEck, Bitwise, Fidelity and Ark Invest. Crypto analysts had long awaited such a blanket approval for Bitcoin funds directly backed by the token itself rather than derivatives.
But Gensler’s firm clarification confirms the ongoing impasse remains in place for now. The SEC has yet to approve any spot Bitcoin ETFs, arguing the underlying Bitcoin markets remain prone to manipulation and too volatile to protect mainstream investors.
While Bitcoin-linked equity funds and futures-based products have made some headway with approval, direct spot ETFs are still elusive for issuers hoping to open the floodgates to Wall Street capital. Today’s unauthorized tweet gave false hope, before Gensler’s rebuttal dashed those dreams once again.
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