US SEC Approves Spot Bitcoin ETFs a Day After Its 'Hacked' X Account Prematurely Shared Such News

By Jace Dela Cruz

Jan 11, 2024 03:08 AM EST

The US Securities and Exchange Commission (SEC) has approved the trading of spot bitcoin exchange-traded funds (ETFs) in the country, a surprising move from the agency, which earlier rejected bitcoin ETFs due to concerns they could be easily manipulated.

According to Business Insider, the SEC has given the green light to 11 bitcoin ETF applications from various issuers, including BlackRock, Fidelity, Invesco, and VanEck, even though some officials and investor advocates warned that the products carried risks.

(Photo : VALERIA MONGELLI/AFP via Getty Images)
This photograph taken on December 7, 2022 shows the bitcoin logo on a smart phone in a greenhouse heated with bitcoin miners near Amsterdam.

US Approves Spot Bitcoin ETFs for Trading 

In a document posted on its website, the SEC said the bitcoin ETF approvals were on an accelerated basis. It added that trading in the ETFs will start on Thursday, signaling a new era for investors seeking the biggest cryptocurrency in the world without directly holding it, providing a significant boost for the crypto world beset by scandals.

SEC Chair Gary Gensler maintained a cautious stance on bitcoin In a statement released following the approval of the listing and trading of several spot bitcoin ETP shares, Gensler said bitcoin "is primarily a speculative, volatile asset that's also used for illicit activity including ransomware, money laundering, sanction evasion, and terrorist financing."

"While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin. Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto," he added.

READ ALSO: Bitcoin Price Soars Above $45,000 for First Time Since April 2022 

SEC X Account Displays False Post

Spot bitcoin ETFs have been approved for trading amid increased interest and demand for regulated investment products tied to the cryptocurrency market. US investors have long awaited the introduction of bitcoin ETFs for a more accessible and convenient way to gain exposure to the cryptocurrency.

The approval of the spot bitcoin ETFs also came after the SEC's X social media account was hacked late Tuesday, posting an unauthorized message that the bitcoin ETFs had been approved.

Shortly after the post appeared, Gensler clarified on his personal account that the SEC's account was compromised and asserted that the agency had yet to approve the listing and trading of spot bitcoin exchange-traded products.

READ MORE: JPMorgan Chase Says Ethereum Will Outperform Bitcoin, Other Cryptocurrencies in 2024

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