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Bitcoin ETF managers await SEC ruling, following social media hack

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January 10, 2024

Asset managers are hopeful that the Securities and Exchange Commission will approve trading of bitcoin exchanged-traded funds. However, on Jan. 9, someone hacked the SEC's X (formally Twitter) account and left a fake message saying that ETFs had been approved, according to a report by Reuters.

The regulator is currently considering a proposal from asset managers Ark Investments and 21Shares to launch a spot bitcoin ETF. If approved, investors could gain access to cryptocurrency without directly holding it. Many other managers also have ETF applications pending with the SEC including BlackRock, Fidelity and VanEck.

When the fake post was made, the SEC quickly deleted it and X confirmed that an "unidentified individual" had obtained control of a phone number associated with the agency's account.

However, experts do not believe this will impact the SEC's decision. In fact, Standard Chartered analysts believe a positive decision could boost bitcoin's price to as high as $100,000.

"It's a huge positive for the institutionalization of bitcoin as an asset class," Andrew Bond, managing director and senior fintech analyst at Rosenblatt Securities, said in the release. "The ETF approval will further legitimize bitcoin."