The Securities and Exchange Commission (SEC) made a statement on Tuesday, acknowledging that its X account had been compromised. The agency disavowed a recent tweet claiming that it had approved the first Bitcoin exchange-traded funds (ETFs) to enter the market.
Following the initial tweet, there was a brief surge in Bitcoin’s price as news outlets, including _, reported on the supposed ETF approvals. However, the price of Bitcoin has since dropped below its pre-announcement level. As of 4:45 p.m. ET, Bitcoin was trading at $45,986, reflecting a 1.6% decrease from before the tweet and a 2.2% decline over the past 24 hours.
Several prominent fund issuers, including BlackRock, Fidelity, Invesco, and VanEck, have submitted applications to offer ETFs that hold spot Bitcoin. The SEC is expected to respond to an application by ARK Invest and 21Shares by Wednesday.
Although the SEC had previously rejected similar applications due to concerns about fraud and manipulation in Bitcoin markets, a panel of federal judges questioned the agency’s reasoning last year. This development has paved the way for potential approvals in the future.