SEC Didn’t Approve ETF Yet as FUD Over Hacked Tweet Spreads

You’d be forgiven for thinking that the spot Bitcoin ETF approval process was a soap opera, and not a real-life regulatory affair. The lead-up to the Securities and Exchange Commission’s inevitable approval of a crypto-based fund has been filled with drama, but the writers took the script to the next level today. Earlier this morning, the official SEC Twitter account posted on the platform that they had officially approved the United State’s first spot Bitcoin ETF. The market quickly went into overdrive, with the price of BTC surging to nearly USD $48K (AUD $71K) in a matter of hours. If only things were that simple…

SEC Twitter Account Was “Compromised”

This isn’t the first time false news of an ETF approval has spread through the cryptosphere. In October, several prominent media outlets ran with a fake tweet pushing documents that supposedly proved that an ETF was on its way. However, the SEC quickly poured water over the fire, posting a tweet that is now hilarious in retrospect. 

As it turns out, the SEC may not be the best source of information on the SEC. Just a few hours after the “approval tweet” went out this morning, it was deleted. Why?

SEC’s twitter account was “compromised”.  The team quickly went into panic control, posting a follow-up tweet to try and resolve the situation.

The crypto market, rather than seeing the hilarity of the situation, overreacted to the fake news and started panic selling, causing the price of BTC to crater more than 3% in less than half an hour.

Interestingly, the fake tweet could have some serious implications for the U.S. regulatory body, who may be forced to investigate themselves for market manipulation. Most expect the results to be akin to “we have investigated ourselves and cleared ourselves of all wrongdoing”, but it is still a noteworthy outcome for something that was likely just a meme.