The cryptocurrency market, including Bitcoin, has seen changes in response to a post on social media platform X on January 9, stating that U.S. authorities have given approval for a set of applications to establish the inaugural Bitcoin Exchange-Traded Fund (ETF) in the country.
The post in question surfaced on the official X account of the U.S. Securities and Exchange Commission (SEC), the regulatory authority responsible for approving the introduction of Bitcoin Exchange-Traded Funds (ETFs) in the nation. Subsequently, the information disseminated rapidly across social media, news portals, newspapers, and major outlets like Bloomberg. The post asserted that the SEC had granted approval for the initiation of Bitcoin ETFs for immediate trading on all nationally registered stock exchanges.
Around 10 minutes later, SEC Chairman Gary Gensler dampened the market enthusiasm. Via his personal X account, Gensler clarified, “The SEC’s X account has been compromised, and a fake post has been made. The SEC has not approved the opening, listing, and trading of immediate Bitcoin ETF products.”
An SEC spokesperson confirmed that the initial post “was not an SEC post or from SEC staff”. By 5 pm on the same day, the SEC had regained control of its X account, and the misleading information was deleted.
Bitcoin’s value experienced a brief 1.5% surge following the dissemination of the false information, but promptly retreated after the SEC’s clarification, at times witnessing a 3.4% decrease compared to the preceding 24 hours. At noon today in Vietnam time, Bitcoin’s price stood at $46,154, marking a nearly 1.7% decline compared to the same period yesterday.
Bitcoin’s market capitalization currently exceeds $904 billion, contributing to the overall global cryptocurrency market capitalization of $1.71 trillion.
Cryptocurrency investors are anxiously anticipating the SEC’s forthcoming announcement this week regarding the approval of applications for Bitcoin Exchange-Traded Funds (ETFs) for immediate trading. The potential approval of such funds would mark a significant turning point for this digital asset. A total of 11 asset management firms have submitted applications to the SEC seeking permission to launch immediate Bitcoin ETFs, and as of yet, they have not received any responses. The deadline for the SEC to disclose decisions on some of these applications is Wednesday (January 10).
Previously, the SEC had rejected proposals for immediate Bitcoin ETFs, but now the regulatory agency has fewer justifications for maintaining such rejections. Last year, a federal court ruled that the SEC’s refusal to approve the conversion of a $29 billion bitcoin trust fund into a Grayscale immediate Bitcoin ETF was an “arbitrary and capricious” decision.
In recent months, the price of Bitcoin has experienced a surge due to the prevailing expectation that the SEC is poised to greenlight immediate Bitcoin ETFs. Year-to-date, Bitcoin’s value has increased by approximately 7%, following a remarkable 170% surge in the previous year.
Among the companies vying for SEC approval of immediate Bitcoin ETFs are prominent names in the asset management sector, including BlackRock, Invesco, and Franklin Templeton, alongside smaller players like Ark Investment Management and Bitwise. These companies have recently disclosed the fees associated with their proposed ETFs, anticipating potential approval. Some of the funds are projected to significantly reduce fees or even waive them during the initial operational phases.
The SEC has consistently argued that immediate Bitcoin ETFs cannot provide the same level of investor protection as traditional investment products. Earlier this week, SEC Chairman Gensler posted on X, outlining the drawbacks of investing in digital asset products, emphasizing that issuers of these products “may not comply with the law” and that cryptocurrency investments “can be very risky and often volatile”.
According to Bloomberg
By. Pham Thanh Bien
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