Hacked Hype to Historic Approval: SEC's Bitcoin ETF Rollercoaster

The recent events surrounding the US Securities and Exchange Commission (SEC) and the Bitcoin exchange-traded funds (ETFs) have been a rollercoaster for the cryptocurrency market.

Here's a summary of what happened:

SEC's Twitter Account Hack and False ETF Approval Announcement:

A hacker posted a fraudulent tweet from the SEC's official Twitter account at 4:11 PM EST on Tuesday, falsely announcing the approval of a spot Bitcoin ETF. This unauthorized tweet led to a brief spike in Bitcoin's price.

Price Fluctuations of Bitcoin:

Following the fake announcement, Bitcoin's price initially spiked, reaching near $48,000. However, after SEC Chair Gary Gensler clarified that the tweet was unauthorized and that the agency had not approved any Bitcoin ETFs, the price dropped to around $45,500.

SEC's Response and Investigation:

The SEC confirmed that their Twitter account had been compromised and stated that the unauthorized content was not drafted or created by them. They are investigating the matter with the Office of the Inspector General and the FBI.

Security Lapse at SEC:

It was revealed that the SEC's Twitter account did not have two-factor authentication enabled at the time of the hack. This lapse in security measures was highlighted as a critical issue.

Political Reaction and Call for Investigation:

The incident led to calls for an investigation from US politicians, with Senator Bill Hagerty emphasizing the need for accountability.

Approval of Bitcoin ETFs:

One day after the hack, the SEC finally approved the launch of 11 spot Bitcoin ETFs that would hold Bitcoin directly. This decision marks a significant milestone for the crypto community after 10 years of failed applications and is expected to lead to a surge in institutional investment​​​​.

This sequence of events underscores the sensitivity of the cryptocurrency market to regulatory news and the importance of robust security measures for social media accounts of major regulatory bodies. The eventual approval of the Bitcoin ETFs is a positive development for the crypto community, likely to have long-term implications for the market.