Written by Peter Hoskins, Business Reporter
Date: 10 January 2024, 01:19 GMT
Updated: 26 minutes ago

Image Source: Getty Images

Bitcoin experienced a brief surge on Tuesday following a tweet from the US Securities and Exchange Commission (SEC) announcing the approval of exchange-traded funds (ETFs) for the cryptocurrency. However, the tweet was later deleted and the SEC stated that their account had been compromised.

The false tweet was posted on the SEC’s official Twitter account at around 4:00 PM Washington time, causing a temporary spike in Bitcoin’s value to almost $48,000, before returning to around $46,000.

US regulators are expected to make an announcement on the approval of spot Bitcoin ETFs this week, which would be a significant development for the cryptocurrency market. Several asset management firms have already applied for SEC approval for these ETFs.

ETFs are investment portfolios that allow investors to bet on multiple assets without actually purchasing them. They are traded on stock exchanges and their value is determined by the performance of the underlying assets in real time. A spot Bitcoin ETF would directly purchase the cryptocurrency at its current market price throughout the day.

The SEC has stated that they will work with law enforcement to investigate the unauthorized access to their account and any related misconduct. This incident highlights the anticipation surrounding the potential approval of spot Bitcoin ETFs and the desire for mainstream acceptance of the cryptocurrency in financial markets.