Spot Bitcoin ETF Approval Tweet False, Says SEC's Gensler

Chaos erupts and markets react to fake SEC approval announcement. The price of bitcoin surged and then fell after the unauthorized post on X.

LucyBrewster310x310
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Finance Reporter
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Reviewed by: Kent Thune
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Edited by: Ron Day

The price of bitcoin spiked Tuesday after a false post on the Securities and Exchange Commission’s official Twitter/X account announced that the agency had approved the first spot bitcoin ETF Tuesday, before SEC Chairman Gary Gensler clarified in a statement that the SEC official account had been compromised. 

The agency posted on Twitter/X at 4:11pm ET that they had approved the vehicles to be listed on all registered national securities exchanges. The price of bitcoin rose to about $47,914—up 2.8%. 

“Today’s approval enhances market transparency and provides investors with efficient access to digital asset investments within a regulated framework,” a statement from Gary Gensler read on the false post. The post has now been removed from the site. 

SEC Twitter/X Account 'Compromised'

Gensler clarified at 4:26 pm on his personal Twitter account that the SEC government tweet was false. “[A]n unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products,” he wrote.

The security breach on the SEC’s Twitter account comes as anticipation for a spot bitcoin ETF has reached a boiling point. While ETFs that track cryptocurrency futures have been trading since 2021, the SEC previously rejected dozens of applications for a spot bitcoin ETF on the grounds that the funds are susceptible to market manipulation and fraud. Yet after mounting pressure from investors and the agency’s loss in court to Grayscale on Aug. 29, consensus began to build in the fall that the SEC would eventually approve the funds.

Steven McClurg, the Chief Investment Officer of Valkyrie, told etf.com on Tuesday he expects the funds to be approved Wednesday and begin trading Thursday. About a dozen ETFs are poised to launch, including ones from traditional Wall Street players such as BlackRock and Fidelity. 

McClurg said Tuesday he expects about $2 to $4 billion dollars flow into the newly launched ETFs this week upon launch. 

Contact Lucy Brewster at [email protected].

Lucy Brewster is a finance reporter at etf.com covering asset managers, emerging technologies, and regulation. She hosts etf.com webinars and appears on Exchange Traded Fridays, etf.com’s flagship podcast. She previously was a finance fellow at Fortune Magazine where she covered markets, investment strategy, and venture capital. She has also been a freelancer writer at the publication Mergers & Acquisitions and a research fellow at the Historic Hudson Valley. 

She graduated from Vassar College in 2022 with a degree in History and was an editor of The Miscellany News, the college's award winning student run newspaper. 

Lucy lives in Brooklyn, NY, and in her free time she loves to run and find new recipes to cook.