Bitcoin ETF: Cryptocurrency Volatility as Regulator Discovers Compromised Account

Bitcoin experienced a brief surge in value on Tuesday following a post on the US Securities and Exchange Commission’s (SEC) Twitter account announcing the approval of new exchange-traded funds (ETFs) for the cryptocurrency. However, the SEC later deleted the post and stated that its account had been compromised. The social media platform confirmed that the compromised account was not a result of a breach in its systems. US regulators are expected to make an official announcement regarding the new ETFs later this week. The false post appeared on the SEC’s official Twitter account and was quickly circulated by social media users and business news outlets. The SEC’s chair, Gary Gensler, refuted the announcement on his personal Twitter account, stating that the SEC had not approved the listing and trading of spot bitcoin exchange-traded products. The SEC spokesperson confirmed that there was unauthorized access to the SEC’s Twitter account for a brief period of time and that the matter will be investigated by law enforcement and government partners. Twitter also conducted a preliminary investigation and found that the compromise was not due to a breach in its systems but rather due to an unidentified individual gaining control over a phone number associated with the SEC’s account through a third party. Bitcoin’s value briefly reached almost $48,000 before falling back to around $46,000. Investors are eagerly awaiting the SEC’s announcement on the potential approval of spot bitcoin ETFs, which would be a significant milestone for the cryptocurrency market in gaining acceptance in mainstream financial markets. Several asset management firms have applied for SEC approval for spot Bitcoin ETFs, which would allow investors to bet on multiple assets without purchasing them directly.