The Securities and Exchange Commission (SEC) denied the announcement about bitcoin ETFs on social media on Tuesday afternoon. According to a spokesperson for the SEC, the agency’s @SECGov X/Twitter account was compromised and the unauthorized tweet regarding bitcoin ETFs was not made by the SEC or its staff.
The false social media post claimed that the SEC had approved bitcoin ETFs for trading, causing the price of bitcoin to briefly spike before quickly sliding below $46,000. The SEC is expected to make a decision on bitcoin ETFs this week, following years of opposition. More than a dozen asset managers have filed applications to create such a fund, and many of them filed updated registration statements on Tuesday morning.
The price of bitcoin has been climbing in recent months, with growing optimism that spot bitcoin ETFs would be approved. Proponents argue that the launch of spot bitcoin funds could bring a new type of investor into digital assets, as ETFs are a regular instrument used by financial advisors.
SEC Chair Gary Gensler has been a vocal opponent of crypto during his tenure, and the commission has brought legal action against several major crypto exchanges. Gensler had used social media earlier in the week to urge investors to use caution when buying products tied to crypto.
It was noted that last year, the SEC lost a court case against crypto asset manager Grayscale, which wants to convert an over-the-counter trust holding bitcoin into an ETF. The SEC declined to appeal that ruling, fueling speculation that the regulator would soon approve bitcoin ETFs.
A previous version of this story incorrectly stated that the SEC had approved bitcoin ETFs for trading and has since been updated to reflect that a false social media post was made.