The Bitcoin ETF Approval Controversy

The world of bitcoin and cryptocurrency was sent into a frenzy on the early morning of 10th January, 2024, when a tweet from the US official SEC tweeter account (now X) announced the approval of a long-awaited spot bitcoin ETF. However, within minutes, the jubilation turned to confusion and anger when SEC Chair Gary Gensler declared the tweet a malicious hack and confirmed that no such approval had been granted.

The Hack:
It appears that the SEC X account was compromised, and an unauthorized tweet proclaiming the green light for bitcoin ETFs was posted. This fake news spread like wildfire on social media and financial news channels, causing a dramatic surge in bitcoin prices. The incident highlights the vulnerability of social media platforms and the potential for misinformation to manipulate markets.

The Controversy:
The bitcoin ETF approval has been a contentious issue for years, with the SEC raising concerns about potential market manipulation and investor protection. Several applications for spot bitcoin ETFs have been filed, but the SEC has yet to approve any, citing these concerns. The false tweet ignited calls for increased transparency and stricter regulations to prevent such incidents from happening again.

Price manipulation: When the fake news of a spot Bitcoin ETF approval hit the airwaves, Bitcoin's price surged, fueled by investor excitement. Dreams of lambos and moon shots danced in everyone's heads. The joy was short-lived. Within minutes, SEC Chair Gary Gensler declared the tweet a hack, confirming no such approval existed. The celebratory mood evaporated, replaced by a wave of disappointment and anger.