Early this Wednesday, bitcoin (BTC) soared to its highest level in two years ($47,914). This sudden rise occurred after a fake announcement was posted on the Securities and Exchange Commission's (SEC) official X account (which was hacked). The hackers posted a message announcing that the regulator had approved the launch of the Exchange Traded Fund (ETF).
The effect of the false announcement was immediate. BTC rose from $46,700 to almost $48,000. However, after a few minutes, another Commission publication reported that the account had been "compromised" and that an "unauthorized post" had been posted:
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.
After this post, bitcoin immediately plummeted to $45,400.
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
In a later statement, an SEC spokesperson told CNBC that "The SEC will work with law enforcement and our partners across government to investigate the matter and determine appropriate next steps relating to both the unauthorized access and any related misconduct."
The SEC is expected to decide on bitcoin ETFs this week after opposing them for years.
What is bitcoin ETF?
In the middle Finect, Jose Trecet describes the BTC ETF as “an exchange-traded fund that tracks the price of Bitcoin” and states that “unlike buying Bitcoin directly, where the investor owns the cryptocurrency, An ETF would allow investors to gain exposure to its value without actually owning it. This is done through a product that can be easily bought and sold on traditional stock markets."
The SEC's decision is considered a "crucial event (...) that could mark an important milestone in the history of cryptocurrencies." Javier Molina, expert in financial assets, told Finect:
The Bitcoin ETF is important because it changes the way we interpret bitcoin as a long-term reserve asset or asset class. With an ETF you make it easy for anyone to enter the market, without having a wallet or having to open an account on an exchange.
