The Securities and Exchange Commission (SEC) fell victim to a cyber attack, resulting in the compromise of its official X account. The attackers utilized this platform to post misleading information regarding the approval of a Spot Bitcoin (BTC) Exchange-Traded Fund (ETF).
The fabricated announcement, claiming the approval of several spot BTC ETFs, triggered a surge in market activity as investors rushed to capitalize on the supposed development. Likewise, the misinformation spread rapidly, causing a temporary spike in Bitcoin prices and leading to confusion among market participants.
Sec Response to the Attack
However, the SEC was quick to respond, issuing a statement clarifying that the post was unauthorized and the information was false. Meanwhile, the incident underscores the vulnerability of regulatory institutions to cyber threats and the potential ramifications such attacks can have on financial markets.
A compromised account raises questions about the overall security infrastructure in place to safeguard critical information and communication channels. As such, the SEC has pledged to conduct a thorough investigation into the breach, collaborating with cybersecurity experts to identify the perpetrators.
Additionally, the focus is likely to extend beyond apprehending those responsible, as regulatory bodies globally may reassess and enhance their cybersecurity measures to prevent future incidents.
SEC Greenlight on Bitcoin ETF is Close
While the SEC maintains a vigilant stance in investor protection, there is a glimmer of hope for enthusiasts awaiting approval of spot Bitcoin ETFs. these ETFs, unlike other futures counterparts, would directly hold physical Bitcoin, offering a more straightforward and transparent investment vehicle for traditional investors.
The cryptocurrency community is optimistic that asset managers who complied with the SEC’s tear-end deadline are poised to introduce their Bitcoin ETFs today. Invesco Galaxy, Valkyrie, WisdomTree, Bitwise, Franklin Templeton, BlackRock, and VanEck are among the potential filers for the spot BTC ETF.
Bitcoin to Reach $50,000
While the current price of BTC is exciting for investors, many industry experts opine that the coin still has enough room for improvement.
Matrixport head of Research Markus Thielen projects that BTC will reach $50,000 levels before the end of this week. He acknowledged that the Bitcoin funding rate is growing steadily, reaching new highs.