Cryptocurrency chaos: Bitcoin’s wild ride on fake SEC greenlight for ETFs

Cryptocurrency markets experienced a rollercoaster ride following a false announcement on the U.S. Securities and Exchange Commission’s (SEC) official social media account, X.  

The misleading post claimed that the SEC had approved the first-ever U.S. spot bitcoin exchange-traded funds (ETFs). The SEC promptly clarified that its X account was briefly compromised, and the posted message about approving bitcoin ETFs was unauthorized and inaccurate. 

Bitcoin’s price surged to nearly $48,000 in response to the fake announcement but quickly plummeted to below $45,000 as the SEC deleted the false information and disowned it. The deceptive post, made just after 4 pm Washington time, spread rapidly on social media, business news websites. 

Approximately 10 minutes later, SEC Chair Gary Gensler took to his personal X account to debunk the false announcement. He stated that the SEC had not approved the listing and trading of spot bitcoin exchange-traded products and clarified that the SEC’s official Twitter account had been compromised. 

Investors are eagerly awaiting an official announcement from the SEC regarding the potential approval of spot bitcoin ETFs, expected later this week. Such approval would signify a crucial milestone for the cryptocurrency market, signalling its acceptance in mainstream financial markets.  

Several asset management firms have sought SEC approval for spot bitcoin ETFs, contributing to the heightened anticipation in the market.