X marks the spot ETFs
‘Unauthorised’ tweet on funds approval sends Bitcoin price soaring
Bitcoin has spiked to its highest level in almost two years after an unauthorised message on the Securities and Exchange Commission’s account on X, previously known as Twitter, said the regulator had approved the listing of exchange-traded funds based on the cryptocurrency.
The message, which later appeared to be deleted, briefly sent the price of bitcoin up about 2.5 per cent to a 22month high of $US47,914.34.
Bitcoin soon fell to $US45,021.05, retreating as much as 6 per cent intraday after SEC chairman Gary
Gensler said the SEC’s X account was “compromised” by an “unauthorised” tweet.
“The regulator in fact hasn’t yet approved spot bitcoin ETFs at this time,” he tweeted.
“The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchangetraded products.”
The apparent hoax may dent confidence but does not preclude the possibility of the SEC approving spot bitcoin ETFs. A decision was widely expected to be made this week.
Pepperstone head of research Chris Weston said: “We will get an announcement in the session ahead, as the formal deadline is today, and most likely we’ll see it confirmed from Gary Gensler’s X account.”
In October, a false X post on a news site about the SEC approving BlackRock’s spot bitcoin ETF application caused bitcoin to spike 10 per cent.
It reversed its gains after BlackRock said there had not been a decision on its application. After that incident, Mr Gensler urged the public to check filings on the SEC’s official website for such information.
Bitcoin has more than doubled since last January, in part on the expectation approval would fuel further purchases of digital currencies. It soared more than 150 per cent in 2023, including a 55 per cent rise in the December quarter.
BlackRock, Ark Invest and several other prospective issuers of bitcoin ETFs filed amended forms on Monday in a final push to offer the investment products a decade after the first application.
“It seems increasingly likely that we’re going to see ETF approval from the SEC, especially with all the amendments to the initial registration form currently happening around fees as applicants look to compete with one another to attract investors,” eToro market analyst Josh Gilbert said.
Ark CEO and founder Cathie Wood said in October the SEC appeared likely to approve a spot bitcoin ETF within “the next few months”, and it “will be the seal of approval that institutions have been waiting for, before they move into this new asset class”.
A decision on the funds is expected on Wednesday.