Bitcoin Briefly Surges on Fake SEC Tweet About ETF Approval

Bitcoin experienced a momentary surge on Tuesday following a post on the U.S. Securities and Exchange Commission's X account, previously known as Twitter, indicating approval of cryptocurrency exchange-traded funds (ETFs). However, the SEC later removed the post, citing a compromised account.

In the aftermath of the misleading announcement, Bitcoin briefly reached nearly $48,000 before retracting to approximately $46,000. The incident highlights the market's sensitivity to regulatory developments and the potential impact of misinformation on cryptocurrency valuations.

US regulators are expected to make an announcement on the new ETFs this week. The false post appeared on the SEC's official X account shortly after 16:00 Washington time (21:00 GMT). It said the regulator "grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges, Yahoo news reported.

Within minutes the SEC's chair Gary Gensler posted a message refuting the erroneous announcement on his personal X account: "The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products."

The Securities and Exchange Commission (SEC) announced the termination of unauthorized access to its account, stating, "The SEC will work with law enforcement to investigate the matter and determine appropriate next steps regarding both the unauthorized access and any related misconduct."

Investors are eagerly awaiting an SEC announcement expected this week regarding the potential approval of spot bitcoin ETFs. This development holds significance as it signifies a crucial milestone for the cryptocurrency market in gaining acceptance within mainstream financial markets.

Numerous asset management firms have submitted applications to the SEC for approval of spot bitcoin ETFs. These investment vehicles, known as Exchange-Traded Funds (ETFs), enable investors to speculate on multiple assets without directly purchasing them.