'Clown Show' Account Hack Won't Affect Wednesday Bitcoin ETF Approval Deadline, Analysts Say

The false start on a spot Bitcoin exchange-traded fund (ETF) caused by the hack of the Securities and Exchange Commission's (SEC) X (formerly Twitter) account has analysts and traders wondering whether the anticipated Wednesday decision could be delayed.

What Happened:  The fake approval news by the compromised SEC account caused the price of Bitcoin BTC/USD to whipsaw, liquidating over $200 million in the process. According to ETFStore President Nate Geraci, "at least one prospective spot bitcoin ETF issuer is concerned" about whether this could prompt a delay for the anticipated Wednesday approval date. However, Geraci stressed Wednesday is a hard deadline: "There’s a regulatory process to follow here. That doesn’t involve X." 

Similarly, 21Shares President Ophelia B Snyder commented, “I don’t think it will affect the process or what comes next.”

“I don’t think it will affect the process or what comes next.” -21Shares President @OpheliaBSnyder on SEC fake tweet

Everyone remain calm.

I offer some thoughts on today’s clown show here as well.

via @Yueqi_Yang @kgreifeld https://t.co/fLun3yEU4p pic.twitter.com/PvIW7dFlmh

— Nate Geraci (@NateGeraci) January 9, 2024

CoinDesk reporter Nikhileshde cited an SEC spokesperson who had confirmed that if the agency approves the applications, it will be reflected on the EDGAR database.

Heavily followed crypto and equity trader Shardi B Trading conducted a poll on X, asking “You think this nonsense delays the ETF tomorrow?” 51.7% of respondents voted Yes, indicating the incident indeed rocked the market's confidence in the penciled-in Wednesday deadline.

Also Read: SEC's Hacked Tweet On Bitcoin ETFs Causes Massive Trader Losses, Over $220M Liquidated

Why It Matters: Reuters cited anonymous sources who remain confident that the apparent hack will not derail the process. 

Josh Gilbert, an analyst at eTORO, remained optimistic about a Wednesday approval in an interview with ausbiz. However, he sees a potential "sell the news" event in the short term, with a rally topping out at $50,000. Retail investors may find buying opportunities later on, according to Gilbert. 

The analyst thinks crypto will find a place within a diversified investment portfolio and voiced optimism about Ethereum's performance this year, considering its prospects of an Ether ETF.

Price Action: Bitcoin was trading at $45,416 at the time of publication, down 3.2% in the past 24 hours. 

Now Read: Bitcoin Dips Below $45,000 On ETF Approval False Start: 'There May Not Be A Huge Rally,' Warns Trading Firm
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