Bloomberg ETF expert Eric Balchunas analyzed the tweet posted by the SEC's official account on Tuesday regarding the approval of Bitcoin spot ETFs. This and more news in this handy daily summary so that you are always informed with the most recent events that occur within the crypto world.
A planned tweet, posted on the wrong date
📍Bloomberg ETF analyst Eric Balchunas believes the SEC tweet, which Gary Gensler flagged as false on Tuesday, could be legitimate. However, in his opinion, the message on X's account at the securities regulatory agency was posted on the "wrong date."
As we know, the SEC must decide whether to approve or deny the ETF requested by Ark Invest today, January 10, the date on which the 240-day period that the securities regulator has to respond to the application made by the asset management company ends.
While the SEC had not yet taken a position on Bitcoin ETFs other than delaying its responses to applications, on January 9, one day before the deadline for Ark Invest's ETF proposal, the SEC published a message indicating that Bitcoin exchange-traded funds had been approved for listing on the country's exchanges. However, The message was denied minutes later by SEC Chairman Gary Gensler., who said the agency's social media account had been hacked.
Regarding this, Bloomberg ETF expert Eric Balchunas pointed out that the message could have been posted by mistake, on the wrong date. “The tweet would have made PERFECT sense tomorrow at this time,” Balchunas said on Tuesday.
The ETF analyst also noted that the language used in the message “sounds legitimate,” and that it reflected the SEC’s known style when communicating an announcement. Balchunas also opined that it was unlikely that the message was written by “a crypto idiot making a joke.”
SEC Calls for Investigation into False Announcement of Bitcoin ETF Approval
📍Several senators and securities lawyers have spoken out against the published message, regarding the alleged approval of Bitcoin ETFs, from the SEC account at X.
While Gensler explained that the agency's social media account was compromised to post the alleged approval of the ETFs, experts consider an investigation against the SEC to be appropriate, to find out if it was a case of market manipulation. Charles Gasparino of Fox Business, reported that several lawyers are asking Congress to investigate the SEC “after it moved the price of BTC up and down following the hacked tweet that it had approved the first BTC spot ETF and then said it was fake.”
Bitcoin's price rose to $47.900 when news of the alleged ETF approval broke and fell shortly after to $45.000 when Gensler reported that the message was fake and the account had been hacked.
Meanwhile, an SEC spokesman said the agency will begin investigating the matter to find the person responsible and impose a punishment commensurate with the “related misconduct.”
GBTC trading activity increases
📍Grayscale Bitcoin Trust (GBTC), the private trust of Grayscale, is seeing record levels of trading activity in anticipation of its transformation into a Bitcoin ETF. According to Bloomberg's Balchunas, nearly $500 million was traded through this Bitcoin financial vehicle on Monday, outperforming 99% of existing ETFs on the market in terms of trading activity.
Balchunas indicated that the exponential growth that Grayscale's GBTC is experiencing is being driven by community expectations regarding the possible approval of Bitcoin ETFs today, January 10.
Fund issuers further reduce fees
📍Fund managers seeking SEC approval to launch a Bitcoin ETF have lowered their fees again. In the latest changes to the final filings of Bitcoin ETFs, Bitwise, WisdomTree, Invesco and Valkyrie reported new adjustments to the funds' commission rates, reducing the fees themselves hours before the SEC's decision on these listed investment vehicles is known.
In its amended filing yesterday, Bitwise adjusted its fees down 0,04% to 0,20% for its Bitcoin spot ETF. Other fund issuers, including WisdomTree, Invesco and Valkyrie, also reduced their commission rates, to increase their appeal to ETF investors.
The SEC is expected to announce today, January 10, whether it will approve the ETF proposed by Ark Invest and, along with it, other funds submitted by managers such as BlackRock, Grayscale, Invesco and others.
Continue reading: The SEC has not yet approved Bitcoin ETFs and claims that his account at X has been hacked
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