The initial false post included a graphic and quote from chairman Gary Gensler stating: “Today’s approval enhances market transparency and provides investors with efficient access to digital asset investments within a regulated framework.”
Minutes later Gensler posted to his official personal X account announcing the approval tweet was false.
“The @SECGov twitter account was compromised, and an unauthorized [sic] tweet was posted,” his tweet read.
“The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.”
The original post on the SEC account was later deleted.
The spot price of Bitcoin hit US$47,900 ($76,786) according to Google Finance on the false approval announcement, before falling as low as US$45,419 ($72,809).
It since recovered to almost US$46,000 ($73,740).
Investors questioned on X the SEC’s ability to keep investors safe if it could not protect its own social media account, with some wondering if Gensler’s account was also compromised or the initial tweet perhaps accidentally posted by staff one day early.
The SEC did not provide any immediate detail on the incident.
It did not publish an ETF approval decision on its public website.
Madison Reidy is the host of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.
