The SEC's social media account reportedly announced approval of spot bitcoin ETFs, but SEC Chairman Gary Gensler swiftly declared the account was hacked and the post unauthorized. This led to speculation of internal error or manipulation within the SEC, as the timing coincided with the anticipated approval of multiple spot bitcoin ETFs, including a proposal by Ark Invest and 21shares, with trading expected to start soon.
The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.
— Gary Gensler (@GaryGensler) January 9, 2024
The US SEC is expected to notify spot Bitcoin ETF applicants of approvals by Friday, with analysts predicting launches within days. Grayscale and Fidelity's filings have generated excitement, while some market players threaten lawsuits if applications are not approved. A report downplaying approval chances may have caused a Bitcoin selloff, but experts anticipate a buying opportunity after the ETF frenzy.
The founder of ACE Exchange, a major Taiwanese cryptocurrency exchange, has been arrested for alleged fraud. David Pan and a co-conspirator are accused of using false advertisements on social media to deceive investors. The police have seized assets worth at least $6.4 million. ACE Exchange plans to delist the implicated cryptocurrency and is cooperating with the investigation.
The potential impact of the Federal Reserve's interest rate cuts on the cryptocurrency market, particularly Bitcoin, is discussed in this news. While rate cuts historically lead to a brief rally in the U.S. dollar and risk aversion, it could also result in a decline in investor risk-taking and asset price deflation, including in Bitcoin. Some observers believe that the market may overestimate the U.S. economy's ability to avoid a recession, leading to a negative market reaction.
The SEC's recent acknowledgment of Ethereum (ETH) as a commodity has raised expectations for the approval of an Ether ETF. Analysts believe that this implicit nod from the SEC indicates a positive outlook for the cryptocurrency, potentially leading to the launch of an Ether ETF in the near future.
