Spot Bitcoin ETFs Hang in the Balance Amidst SEC’s Hacking Woes

Estimated read time 3 min read
  • Despite the recent SEC hack and a false announcement regarding spot Bitcoin ETF approval, analysts believe the decision is unlikely to be delayed, with insiders suggesting a green light on January 10.
  • The crypto community remains cautiously optimistic, navigating through the temporary chaos caused by the unauthorized message.

Navigating Through the SEC’s Recent Turmoil

The recent hacking incident at the United States Securities and Exchange Commission (SEC) has raised eyebrows in the crypto community, but analysts believe it is unlikely to cause a delay in the long-anticipated decision on spot Bitcoin ETFs. On January 9, the SEC’s X account was compromised, resulting in a false announcement that spot Bitcoin ETFs had been approved in the United States. Although the message was swiftly deleted, the incident stirred confusion on social media and sent ripples through the markets.

Despite concerns that the SEC might exploit the situation to extend the decision beyond the expected January 10 deadline, most commentators see this as a remote possibility. Dennis Porter, CEO of Satoshi Action Fund, expressed caution, stating, “It depends on the intention of the SEC. If the SEC is looking for ways to continue delaying the ETF process, it’s possible they could use this as a reason to slow down the rollout.” However, Porter remains optimistic, with insider information suggesting that the SEC will greenlight spot Bitcoin ETFs on schedule.

U.S. attorney and commercial litigator Joe Carlasare echoed this sentiment, deeming it “extremely unlikely” for the SEC to deviate from the Jan. 10 decision timeline due to the hacking incident. While acknowledging that anything is possible, Carlasare remains confident in the SEC’s commitment to making a timely decision.

Mati Greenspan of Quantum Economics, however, warns of the potential for the SEC to exploit the false post as a pretext for a delay. “I can certainly see a situation where the SEC would try to use this fiasco as a way to delay the ETF approval. It wouldn’t be the first time they’ve used underhanded methods to force their agenda on the markets,” Greenspan cautioned.

Bloomberg ETF analyst Eric Balchunas remains optimistic about the approval timeline, anticipating an official announcement between 4:00 pm and 5:00 pm Eastern Time on January 10. Digital asset lawyer Anthony Tu-Sekine of Seward and Kissel concurs, stating that the incident is unlikely to impact the approval likelihood at this advanced stage. Tu-Sekine expressed bewilderment, saying, “This is really puzzling.”

As the crypto community eagerly awaits the SEC’s decision, the recent hacking incident adds a layer of uncertainty to an already highly anticipated event. However, analysts remain confident that the regulatory body will uphold its commitment to a timely decision, despite the temporary chaos caused by the unauthorized announcement.

vivian

Vivian Njoroge is a seasoned crypto and blockchain news writer with a passion for decoding the complexities of the digital financial world. Armed with a keen eye for emerging trends and a knack for simplifying intricate concepts, Vivian brings a unique blend of expertise and enthusiasm to her writing. Her articles, characterized by clarity and depth, aim to keep readers abreast of the ever-evolving landscape of cryptocurrencies and blockchain technology.

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