This time it's serious. After the false report due to the hacking of the US Securities and Exchange Commission (SEC) account on the social network, the regulatory and supervisory authority has set a milestone by approving the marketing of ETFs related to Bitcoin, i.e. exchange-traded funds whose Price follows the development of the spot price of this cryptocurrency because they invest in it. ETFs therefore offer an easy way to invest in Bitcoin without having to buy the asset directly on an exchange such as Binance or Coinbase. They are expected to begin trading this Thursday.
Among all cryptocurrencies, Bitcoin has always enjoyed special and more respectable treatment, although it also has strong critics. It is not considered a security but an asset and is therefore different in terms of regulation and supervision.
In any case, passing the SEC filter with these new investment vehicles represents their crowning achievement in the investment universe. ETFs are investment products that reflect the valuation of an asset such as a commodity, currency, bond, stock or stock index. They are being launched in the hundreds and have become a very common investment, even for individuals, but none related to spot Bitcoin have been approved yet. Yes, there are some related to Bitcoin futures, but they concentrate an additional complexity (a cryptocurrency, a derivative and a synthetic product) that makes them difficult to popularize.
Cryptocurrency proponents believe the novelty will attract billions of dollars in investments in the crypto asset by making it easily accessible to anyone to bet on the rise or fall of its price. Since the regulator began considering the approval of these new products, the price of Bitcoin has skyrocketed.
Asset managers BlackRock, Fidelity, ARK Investment, Invesco, WisdomTree, Bitwise Asset Management and Valkyrie have applied to list the new funds. Trading of these long-awaited funds is expected to begin this Thursday.
The regulator has so far rejected applications to market ETFs related to Bitcoin spot trading on the grounds that they are vulnerable to fraud and market manipulation.
The SEC is one of the organizations that has made life difficult for much of the industry. Despite acting late and failing to prevent scandals, millions in losses and scams, such as the crash of Sam Bankman-Fried and the bankruptcy of its FTX market, the regulator is pursuing cryptocurrencies to enforce strict delivery requirements and collateral trading. This has led to sanctions proceedings and fines against markets, organizers, advertisers and other players in the crypto universe.
Therefore, the hacker attack on his account on the social network X on Tuesday had a special accusation of irony. The regulator's decision was expected this week, adding credibility to the false announcement. “The SEC today granted approval for Bitcoin ETFs to be listed on all U.S. markets. “The approval of Bitcoin ETFs is subject to future monitoring and additional measures to ensure adequate protection for investors,” said the regulator’s fake tweet, which also included a photo of its president, Gary Gensler, posted at 4:11 a.m was posted on the east coast, six hours more on the Spanish mainland.
Gensler himself caused alarm with a message from his account posted at 4:25 p.m.: “The Twitter account @SECGov has been manipulated and an unauthorized tweet has been published.” “The SEC has suspended the listing and trading of exchange-traded Bitcoin spot products are not approved,” his message read. The SEC regained control of his account on the social network
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