SEC denies bitcoin ETF approval after X account compromised
investmentnews.comThe frenzy over the prospect of the Securities and Exchange Commission approving the first bitcoin ETFs reached new levels Tuesday when the regulator’s X account sent out a tweet saying it had granted approval, only for chair Gary Gensler to reveal five minutes later that the account had been compromised.
With the industry on tenterhooks, those five minutes proved long enough for many to react, with Barron’s even sending out a news alert … and then posting another one correcting the error. The American Securities Association was also wrong-footed and issued a statement welcoming the “approval.”
Gensler tweeted: “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 wait, therefore, goes on, although a decision is widely expected on Wednesday. About a dozen companies have filed for spot bitcoin ETFs, Bloomberg reported. The cryptocurrency jumped to a 21-month high this year amid widespread expectations that SEC approval will be granted. The SEC faces a Wednesday deadline to weigh in on an application from Ark and 21Shares.
In anticipation of the potential green light, Invesco, Bitwise, Valkyrie and WisdomTree lowered fees in their spot Bitcoin ETF applications, according to updated filings.
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