Spot Bitcoin ETF Decision Expected Despite SEC's Social Media Hacking Incident
Summary:
The US Securities and Exchange Commission (SEC) is expected to proceed with a decision on spot Bitcoin exchange-traded funds this week, despite a recent security breach of its social media account. The breach led to the false reporting of Bitcoin ETFs approval, causing insinuations that the incident might be used to defer the decision. Despite the chaotic aftermath, experts, analysts, and insiders generally predict that the SEC's decision will likely go as originally planned.
Despite a recent breach of its social media account, the US Securities and Exchange Commission (SEC) is still expected to proceed with a decision regarding spot Bitcoin exchange-traded funds within the week. The SEC's X account experienced a security breach on January 9, where an unidentified individual used the account to falsely report the approval of spot Bitcoin ETFs in the US. The erroneous message, which stirred turmoil on social media and in the markets, was taken down approximately 20 minutes later. The SEC is actively collaborating with law enforcement to uncover the nature of this incident.
Some analysts fret that the mishap could be leveraged as a reason to postpone the decision beyond the expected January 10 cut-off, although the majority views this as very unlikely. Dennis Porter, CEO of Satoshi Action Fund, pondered upon the SEC's intentions. He stated that if the SEC desires to further delay the ETF process, they might wield this incident as excuse. However, his sources still indicate a likely affirmative for the spot Bitcoin ETF applicants come January 10.
Joe Carlasare, a US attorney and commercial litigator, added that while it's all a matter of possibilities, it's highly unlikely that the SEC's decision will be influenced by this single event. Mati Greenspan from the crypto-centric finance firm Quantum Economics suggested that the SEC could take advantage of the fabricated post to justify a delay.
Meanwhile, Eric Balchunas, a Bloomberg ETF analyst, continues to anticipate the official sanction of the spot Bitcoin ETFs to fall between 4:00 pm to 5:00 pm Eastern Time (9:00 pm to 10:00 pm UTC) on January 10.
Anthony Tu-Sekine, a digital asset lawyer at Seward and Kissel, expressed his disbelief about this incident influencing the SEC's ultimate decision. He found the entire situation puzzling, especially when the approval was broadly expected.
Published At
1/10/2024 5:30:15 AM
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