Bitcoin ETF Approval Hoax : Could the Recent SEC Incident Postpone ETF Approval? Here’s The Complete Story

The United States Securities and Exchange Commission (SEC) remains on course to decide on spot Bitcoin exchange-traded funds (ETFs) this week, despite a recent hacking incident involving its social media account. The SEC’s Twitter account, known as X, was compromised on Jan. 9, with an unauthorized post claiming approval of spot Bitcoin ETFs in the United States. The incident has sparked concerns about potential delays, but experts largely view it as a remote possibility.

The Social Media Hack:

On January 9, the SEC’s social media account, known as X, faced a security breach. An unknown party posted misleading information about the approval of spot Bitcoin ETFs in the United States. Although the post was promptly deleted, it raised concerns and speculation in both social media and financial markets.

Investigation and Possible Delays:

The SEC acknowledged the breach and initiated an investigation, collaborating with law enforcement to uncover the incident’s details. Some voices in the industry express concerns that the SEC might exploit this situation to postpone the ETF decision beyond the expected January 10 deadline. However, most observers view this as a remote possibility.

Perspectives on Delay Possibility:

While some, like Dennis Porter, CEO of Satoshi Action Fund, believe that the SEC might consider using the incident to prolong the ETF approval process, others, including U.S. attorney Joe Carlasare, find it highly unlikely. Mati Greenspan of Quantum Economics suggests that the SEC could use the false post as leverage for a delay agenda, highlighting the agency’s history of unconventional methods.

Analysts’ Anticipation:

Bloomberg ETF analyst Eric Balchunas remains optimistic about the official approval of spot Bitcoin ETFs, forecasting a decision window between 4:00 pm to 5:00 pm Eastern Time (9:00 pm to 10:00 pm UTC) on January 10. Digital asset lawyer Anthony Tu-Sekine also shares the sentiment, stating that the incident is unlikely to alter the approval likelihood at this advanced stage.

X confirms the SEC’s account was hacked

In response to the incident, it is confirmed that the account was compromised due to a lack of two-factor authentication. The investigation revealed that the breach was not a result of any vulnerabilities in the SEC’s systems but rather an individual gaining control over a phone number associated with the @SECGov account through a third party.

Despite the social media account hack, the SEC appears poised to proceed with its decision on spot Bitcoin ETFs by the anticipated January 10 deadline. While concerns about a potential delay persist, industry experts remain cautiously optimistic about the approval, emphasizing the importance of security measures in the digital age.