Bitcoin ETF: Cryptocurrency experiences volatility after regulator reveals security breach

Bitcoin experienced a momentary surge in value on Tuesday following a tweet from the US Securities and Exchange Commission's (SEC) X account, announcing the approval of new cryptocurrency exchange-traded funds (ETFs). However, the SEC later deleted the post, citing a compromise of its account. Twitter clarified that the compromised account was not a result of any breach in its systems. It is anticipated that US regulators will make an announcement on the new ETFs sometime this week. The false tweet was published shortly after 4 PM ET and promptly circulated among social media users and business news outlets. In response, the SEC's chair, Gary Gensler, refuted the erroneous announcement on his personal Twitter account. The SEC confirmed the compromise and stated that they would collaborate with law enforcement and government partners to investigate the matter and determine the appropriate course of action. Twitter conducted a preliminary investigation and concluded that the false post was not due to any breach in its systems, but rather a result of an individual gaining control over the @SECGov account through a third party. Two-factor authentication was not enabled at the time of the compromise. Bitcoin initially surged to nearly $48,000 before eventually returning to around $46,000. Investors eagerly await the SEC's announcement regarding the potential approval of spot Bitcoin ETFs, which is expected this week. The approval of a spot Bitcoin ETF would signify a significant milestone for the cryptocurrency market in gaining recognition from mainstream financial institutions. Numerous asset management firms have submitted applications for SEC approval for spot Bitcoin ETFs. ETFs enable investors to speculate on various assets without acquiring them directly, as they are traded on stock exchanges similarly to shares. The value of ETFs is based on the real-time performance of the overall portfolio. While some existing ETFs indirectly include Bitcoin, a spot Bitcoin ETF would directly purchase the cryptocurrency at its current market price throughout the day.