The journey to the approval of Bitcoin Exchange-Traded Funds (ETFs) in the United States has been nothing short of a rollercoaster ride. Recently, the Securities and Exchange Commission (SEC) found itself in the unusual position of having to refute a false announcement made via a compromised agency account. This unexpected occurrence is the latest twist in the long-winded saga of Bitcoin ETFs, which have been the subject of intense speculation for weeks.
A slew of companies, numbering about a dozen, have submitted their applications to list Bitcoin-backed ETFs, anxiously awaiting the SEC’s decision. This anticipation has been stoked by the fact that the price of Bitcoin has more than doubled since the start of the year. The SEC is expected to rule on at least one of these applications by January 10.
The Falsehood Behind the Approval Announcement
The drama escalated late Tuesday when the SEC confirmed that their official account had been compromised. An unidentified individual managed to take control of a phone number linked to the account via a third party. This breach led to the unauthorized proclamation of Bitcoin ETF approval, sending shockwaves through the crypto markets and briefly pushing the price of Bitcoin past $46,000.
The SEC quickly moved to rectify the situation, asserting that the approval announcement was fraudulent and that their Twitter account had been breached. The agency is currently investigating the unauthorized access and has pledged to implement measures to prevent such incidents in the future.
The Real Verdict Still Hangs in the Balance
Despite the social media uproar, the actual decision on Bitcoin ETFs remains pending. The SEC has until Wednesday, January 10, to approve or reject at least one of the 11 applications for spot Bitcoin ETFs. In recent weeks, Bitcoin has been on an upward trajectory in anticipation of regulatory approval, reaching its highest level in about two years.
The approval procedure is a two-step process. Initially, the SEC has to give the green light to the 19b-4 filings from the exchanges, which outline the rule changes necessary for the new class of funds to be traded. Subsequently, the registration statements from the asset managers must be validated before the funds can commence trading.
Bitcoin Price
As of now, the crypto market is witnessing volatile trading as traders eagerly await the SEC’s decision on the approval of spot Bitcoin ETFs. The digital asset market has been buoyed for months by the hopes of ETF approval, with anticipation reaching a fever pitch after Tuesday’s false announcement. At present, the price of Bitcoin stands at $45,340.90, experiencing a slight drop from Monday’s high of $46,990.90.
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