It was the moment that the crypto world had been waiting for. Then it wasn't.
The price of bitcoin (BTC-USD) soared to nearly $48,000 Tuesday afternoon after what appeared to be a message from the Securities and Exchange Commission on X, formerly known as Twitter, announcing that the regulator had granted approval for the launch of spot bitcoin exchange-traded funds.
The SEC had been expected this week to rule on whether as many as 14 different money managers would be allowed to launch the products, which would would allow everyday investors to get exposure to bitcoin without having to own it.
Fifteen minutes later, SEC chair Gary Gensler declared that message to be both "unauthorized" and inaccurate. In his own message on X, Gensler said the SEC's account on that platform had been "compromised" and that "an authorized tweet was posted."
"The SEC has not approved the listing and trading of spot bitcoin exchange-traded products," he added.
An SEC spokesperson said separately that "the unauthorized tweet regarding bitcoin ETFs was not made by the SEC or its staff."
The price of the world's largest cryptocurrency then fell back to $45,500, losing $63 billion in market value over just a matter of minutes.
The communications mishap was the latest drama in a market frenzy surrounding the potential approval of these ETFs, which could expand widespread acceptance of the world’s biggest cryptocurrency and make bitcoin a potential staple in 401(k)s, IRAs, and pension plans.
Speculation surrounding these products helped push the price of bitcoin up more than 150% in 2023. The cryptocurrency rallied again to start 2024 as investors became more optimistic the applications would be approved.
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