The Securities and Exchange Commission (SEC) clarified on Tuesday that the recent social media announcement regarding the approval of Bitcoin Exchange Traded Funds (ETFs) was false. According to an SEC spokesperson, their official Twitter account was compromised, and the unauthorized tweet claiming approval of bitcoin ETFs did not originate from the SEC or its staff. This clarification promptly followed a temporary spike in the price of bitcoin, which then quickly dropped below $46,000.
A Decision Yet to Be Made
It is anticipated that the SEC will make a ruling on Bitcoin ETFs later this week, after years of opposition. Numerous asset managers have submitted applications to establish such a fund, including several that recently filed updated registration statements. The price of the largest cryptocurrency has been steadily rising in recent months, mainly due to growing optimism surrounding the potential approval of spot Bitcoin ETFs. It should be noted that funds tracking bitcoin futures prices are already trading on US exchanges.
Opening Doors for New Investors
Advocates of cryptocurrencies argue that the introduction of spot Bitcoin ETFs could attract a different type of investor to digital assets. ETFs are a well-established asset class commonly utilized by financial advisors. The belief is that advisors and investors who have been hesitant about the complexities related to Bitcoin custody may be more inclined to invest in digital currencies through an ETF. This could potentially broaden the participation of traditional investors in the crypto market.
SEC Chair Gary Gensler, known for his critical stance on cryptocurrencies, has consistently expressed concerns during his tenure. The SEC even initiated legal actions against several major crypto exchanges. However, the SEC’s firm stance on the matter does not deter market optimism regarding the potential approval of Bitcoin ETFs.
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Source: SEC says it did not yet approve Bitcoin ETF, X account was compromised