Bitcoin price drops as SEC disavows approval announcement
- SEC’s X account was compromised
- Unauthorized tweet regarding Bitcoin ETFs
- Bitcoin price dropped after the news
- Multiple fund issuers have applied for ETFs
- SEC expected to approve new funds
The Securities and Exchange Commission (SEC) announced that its X account was compromised, disavowing a tweet that claimed the agency had approved the first Bitcoin exchange-traded funds (ETFs). The unauthorized tweet caused a brief spike in Bitcoin’s price, which then dropped below its pre-news level. Several fund issuers, including BlackRock, Fidelity, Invesco, and VanEck, have applied to offer ETFs holding spot Bitcoin. The SEC is expected to approve multiple applications for new funds on Wednesday, following a prior rejection due to concerns about fraud and manipulation in Bitcoin markets.
Public Companies: BlackRock (N/A), Fidelity (N/A), Invesco (N/A), VanEck (N/A)
Private Companies:
Key People: SEC spokesperson (N/A)
Factuality Level: 7
Justification: The article provides information about the Securities and Exchange Commission disavowing a tweet regarding the approval of Bitcoin exchange-traded funds. It mentions the drop in Bitcoin’s price after the news and the deadline for the SEC to respond to other applications. The information seems to be based on factual events and statements from the SEC.
Noise Level: 3
Justification: The article provides relevant information about the SEC’s X account being compromised and the disavowal of a tweet regarding Bitcoin ETFs. It also mentions the impact on the price of Bitcoin. However, the article lacks in-depth analysis, scientific rigor, and actionable insights. It does not explore the consequences of the SEC’s actions or provide evidence or data to support its claims. Overall, the article contains some noise and lacks substance.
Financial Relevance: Yes
Financial Markets Impacted: Bitcoin market, cryptocurrency companies
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The news article pertains to the Securities and Exchange Commission (SEC) and the approval of Bitcoin exchange-traded funds (ETFs). While there is no extreme event mentioned, the compromise of the SEC’s Twitter account and the subsequent misinformation about the approval of the ETFs could have a financial impact on the Bitcoin market and cryptocurrency companies. The price of Bitcoin dropped after the clarification from the SEC spokesperson.
www.marketwatch.com 
