On January 9, the US Securities and Exchange Commission (SEC) experienced a significant cybersecurity breach, causing a loss of public trust. According to Bloomberg, hackers took control of the SEC’s social media account and falsely announced the approval of spot Bitcoin exchange-traded funds (ETFs).
This misleading information briefly increased the price of Bitcoin and triggered an investigation by US authorities. It also raised concerns about the SEC’s cybersecurity measures and its position on cryptocurrencies.
The SEC, responsible for deciding on the approval of a spot Bitcoin ETF, faced a cybersecurity incident when its social media account was hacked. The false announcement led to a temporary surge in Bitcoin prices and prompted US authorities to look into the breach of the SEC’s social media account.
After the incident, the SEC assured collaboration with law enforcement for an investigation, confirmed the termination of unauthorized access, and disavowed the false post. SEC Chair Gary Gensler clarified that no decision regarding ETFs had been made.
Approximately a dozen companies have applied for approval to list Bitcoin-backed ETFs in the US. The SEC has until January 10 to act on these applications, leading to speculation that decisions might be announced around that date.
Before a spot-backed Bitcoin ETF can start trading, the SEC must approve filings from exchanges and endorse registration applications from issuers. Reports suggest that the SEC is planning to vote on the exchanges’ filings this week, with potential action on the issuers’ applications occurring around the same time.
Despite previous refusals, expectations of SEC approval have risen due to legal developments and growing demand. This comes after CEO Cathie Wood of Ark Investment Management shared her views on potential spot Bitcoin ETF approvals by the SEC in an interview with CNBC. Her firm’s joint proposal with 21 shares was under consideration on January 10, the first deadline for spot Bitcoin ETF applications this year.
This information is not legal advice. Do your own research before making any decisions. Only invest what you can afford to lose and seek independent financial advice if needed. Understand the risks involved before purchasing any cryptoassets.