Cboe Approves Bitcoin ETF Listings Despite Recent SEC Social Media Hack
Summary:
Despite a recent hack on the SEC's social media account falsely announcing Bitcoin ETF approvals, the Cboe has approved listings of Bitcoin ETFs in anticipation of SEC approval. The approval includes offerings from asset managers such as ARK 21Shares, Invesco Galaxy, Fidelity, VanEck, WisdomTree, and Franklin Templeton. This incident led to a brief surge in Bitcoin's prices and triggered calls for an investigation into the securities regulator. Amid this, SEC Chair Gary Gensler issued warnings on the risks in investing in cryptocurrencies.
Despite a recent security breach in which the U.S. Securities and Exchange Commission's social media account was hacked and false information about the approval of a Bitcoin exchange-traded fund (ETF) was posted, the Chicago Board Options Exchange (Cboe) has approved the listing of various spot Bitcoin ETFs in anticipation of future SEC approval. This decision by Cboe comes amid the regulator's growing acceptance of Bitcoin ETF listings. It's worth noting that this action by Cboe doesn't mean SEC's approval is guaranteed.
The Cboe BZX Exchange has given its approval for the listing of securities from several asset management companies, signalling a possible concession from the SEC towards the approval of multiple spot Bitcoin ETFs. Companies such as ARK 21Shares, Invesco Galaxy, Fidelity, VanEck, WisdomTree, and Franklin Templeton have all had their Bitcoin ETF offerings endorsed by Cboe. Final approval or rejection for ARK 21Shares' spot Bitcoin ETF will be determined by January 10, based on deadline, which has led to conjecture that the SEC might give its approval to multiple asset managers at once.
In a surprising incident, the SEC's official account was hacked on January 9, which led to a false announcement suggesting the approval of Bitcoin ETFs. The hacked message was displayed for approximately 20 minutes before it was removed. This breach happened due to a lack of two-factor authentication on the account.
Following the hack, Bitcoin's price rose by 2.5% to $47,901 before falling 7% to $44,701. Speculation continues within the cryptocurrency community regarding what this security lapse entails for the SEC and the future approval of Bitcoin ETFs.
In the wake of the security breach, numerous U.S. lawyers and senators have urged Congress to initiate an investigation into the securities regulatory body. However, there is widespread optimism that this episode will not affect the potential approval of a spot Bitcoin ETF.
As the SEC appears to be inching towards approving a spot Bitcoin ETF, the SEC Chairman, Gary Gensler, issued several warnings about the potential risks of investing in cryptocurrencies. He cautioned investors that trading in digital assets can be very risky and extremely unpredictable. While he failed to mention a Bitcoin ETF explicitly, he stressed the importance of cautious investing.
While anticipations rise for the SEC's approval of a Bitcoin ETF, a number of applications have been amended. However, up till now, the SEC has withheld its approval. It is crucial for investors to understand the associated risks before making investment decisions.
Published At
1/10/2024 10:51:47 PM
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