On Tuesday, the Securities and Exchange Commission (SEC) reported a brief intrusion into its social media accounts, during which a fabricated message regarding the approval of bitcoin exchange-traded funds (ETFs) was posted. The SEC clarified that the post did not originate from them and attributed it to a compromise of their X account by an unidentified entity. They assured that the unauthorized access had been promptly terminated.
The hackers utilized the compromised SEC X account to disseminate a message claiming the approval of long-anticipated financial products, leading to a temporary surge in Bitcoin prices. This incident drew public criticism and raised concerns about the cybersecurity measures employed by federal agencies such as the SEC. Notably, the hackers went further by endorsing false ETF approval posts through likes, contributing to the short-lived impact on Bitcoin’s value.
As a consequence of this security breach, over a dozen businesses have sought permission to list bitcoin-backed ETFs in the United States. The SEC is mandated to respond to at least one of these applications by January 10, sparking speculation among crypto traders regarding a potential significant announcement. ETFs, resembling mutual funds, are tradable assets with shares listed on exchanges like stocks. The introduction of a bitcoin ETF would simplify price monitoring for investors and eliminate the need for cryptocurrency wallets. It is noteworthy that previous attempts to launch a Bitcoin ETF were rejected by the SEC.