What’s happening in the crypto market? Is Bitcoin rising, or is crypto dying? Find answers to all these questions and more in our weekly crypto news round-up.
SEC Twitter Got Hacked
The U.S. Securities and Exchange Commission (SEC) recently found itself at the center of a digital debacle. The SEC’s X account (formerly known as Twitter) was compromised, leading to a brief but impactful episode of misinformation regarding Bitcoin ETFs (exchange-traded funds).
On the afternoon of the incident, an unauthorized post appeared on the SEC’s X account, erroneously announcing the approval of highly anticipated spot Bitcoin ETFs. This fake news, which circulated for about 30 minutes, suggested that the SEC had greenlit these ETFs on all registered national securities exchanges. The reality, however, was quite different. SEC Chair Gary Gensler swiftly addressed the situation, clarifying via his personal account that the SEC had not approved the listing and trading of spot Bitcoin exchange-traded products.
The impact of this false information was immediate — and significant. Bitcoin’s price, which is usually regarded as a measure of general market sentiment in the cryptocurrency world, saw a dramatic spike to around $48,000, followed by a swift decline to below $45,000. The SEC itself has suffered as a result of these events because many people suspected them of foul play and market manipulation.
The SEC’s response to the incident was prompt, and they commenced an investigation in collaboration with their Office of the Inspector General and the FBI. This hacking episode has brought to light the vulnerabilities associated with instant social media communications and their potential to spread misinformation rapidly.
What does this mean for the crypto market?
This situation is a stark reminder of the fragility and volatility inherent in the cryptocurrency market, particularly in response to regulatory news. It underscores the importance of verified information and the considerable influence that regulatory bodies like the SEC hold over the market’s dynamics.
This incident not only highlighted the market’s sensitivity to regulatory news but also raised questions about the security protocols on social media platforms, especially concerning accounts of prominent financial and regulatory bodies.
Bitcoin Spot ETFs Finally Approved
Despite the confusion brought about by the SEC Twitter hack, spot Bitcoin ETFs are actually coming. The U.S. Securities and Exchange Commission (SEC) has approved the applications for spot Bitcoin exchange-traded funds (ETFs) from 11 issuers. Some of the issuers include well-known names like BlackRock’s iShares Bitcoin Trust, Grayscale Bitcoin Trust, and ARK 21Shares Bitcoin ETF, among others.
These ETFs will be listed across major exchanges such as the Chicago Board Options Exchange, the New York Stock Exchange, and Nasdaq. The fee structures for these ETFs vary, with some issuers offering introductory waivers or reduced fees to attract initial investment.
The introduction of spot-based ETFs allows investors to gain exposure to Bitcoin without directly owning the asset. This is a significant development, as it offers a more traditional and arguably safer investment route into the cryptocurrency market, potentially attracting a new class of investors. Prior to this, the only crypto-based ETFs approved in the U.S. were tied to futures contracts with Bitcoin and Ethereum.
What does this mean for the crypto market?
Firstly, it’s important to highlight just how anticipated this approval was. It took a very long time for the SEC to give spot Bitcoin ETFs the green light, and the market is definitely excited now that they’re finally here, with this news overtaking all crypto platforms and forums.
Many analysts predict substantial inflows into these ETFs on the first days of trading. For example, Bloomberg analysts anticipate around $4 billion in inflows, with BlackRock’s Bitcoin ETF potentially seeing about $2 billion of this amount. This is a clear indication of the high level of interest and confidence in these new investment products.
The acceptance and integration of these ETFs into mainstream finance could play a pivotal role in shaping the future of Bitcoin and the wider cryptocurrency market. There is naturally a lot of optimism, but it’s important to remain impartial and consider all the possibilities. This approval also comes with its unique set of challenges and uncertainties. The way these ETFs will interact with the existing market dynamics, regulatory environment, and investor behavior has yet to be fully understood.
To sum it all up, the launch of spot Bitcoin ETFs is expected to bring more accessibility, legitimacy, and possibly stability to the cryptocurrency market, all of which can lead to a change in the regulatory landscape, too. All that said, it’s important to remember that the SEC’s decision isn’t an endorsement of Bitcoin or other cryptocurrencies.
Is Crypto Rising, or Is It Going Down This Week?
Bitcoin’s ups and downs have been one of the biggest news this week — first, it was the SEC spot BTC ETF approval tweet that shot Bitcoin’s price up to almost $48K. Then came the news about the tweet being fake, which caused the BTC price to plummet back to $45K. And that wasn’t all. After all this, came the real announcement: spot Bitcoin ETFs did actually get approved. This caused Bitcoin’s value to rise again, crossing over the $47K mark.
The rest of the crypto market may not have had as crazy of a week as Bitcoin, but there were still quite a few big price movements. Ethereum Name Service (ENS) is up 50% this week, while Ethereum Classic gained 45%. Ethereum itself is also rising, having gained 15% in the past seven days. The market sentiment was overall positive last week, with most cryptocurrencies staying in the green.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
The post The Latest Crypto Market News: January 5 – 12 appeared first on Cryptocurrency News & Trading Tips – Crypto Blog by Changelly.
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