Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
In a care[...]
SEC Hack and Bitcoin ETF Approval Insights
Crypto News | Jan 10, 2024
Image by Harryarts on Freepik
The SEC's Twitter account was compromised, leading to a false post about the approval of Bitcoin ETFs.
This incident was not due to a breach of X's systems but was attributed to an unidentified individual gaining control over a phone number associated with the SEC's account. The false post led to a temporary spike in Bitcoin prices, highlighting the market's sensitivity to regulatory news.
"The SEC's recent security breach is a stark reminder of the fragility of digital systems in the face of sophisticated cyber threats. As we move towards the potential approval of a Bitcoin ETF, it's imperative to bolster our cybersecurity measures to safeguard investor interests." Source: CNBC
The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.
— Gary Gensler (@GaryGensler) January 9, 2024
What to Expect Post-Approval
The approval of a spot Bitcoin ETF by the SEC is a much-anticipated event in the financial world. This move could mark a significant shift in the cryptocurrency market, offering investors a regulated and potentially safer avenue to invest in Bitcoin.
See: Former Citi Executives Launch Bitcoin Securities Startup
- The approval could lead to increased legitimacy and adoption of Bitcoin, potentially driving up its price.
- A regulated Bitcoin ETF could attract a broader range of investors, including those who are cautious about direct cryptocurrency investments.
- The SEC's decision could pave the way for more stringent regulations in the cryptocurrency market.
Comparative Table on Prospective Spot Bitcoin ETF Fees
| ETF Provider | Initial Fee | Fee After Initial Period |
|---|---|---|
| Bitwise (BITB) | 0.0% | 0.2% (after first 6 months) |
| ARK Invest/21Shares (ARKB) | 0.0% | 0.21% (after first 6 months) |
| Invesco Galaxy Bitcoin ETF (BTCO) | 0.0% | 0.39% (after first 6 months) |
| iShares Bitcoin Trust (IBIT) | 0.12% | 0.25% (after first 12 months) |
| VanEck Bitcoin Trust (HODL) | 0.25% | - |
| Franklin Bitcoin ETF (EZBC) | 0.29% | - |
| Fidelity Wise Origin Bitcoin Trust (FBTC) | 0% | 0.25% (after July 31, 2024) |
| WisdomTree Bitcoin Trust (BTCW) | 0.0% | 0.3% (after first 6 months) |
| Valkyrie Bitcoin Fund (BRRR) | 0.80% | - |
| Grayscale Bitcoin Trust (GBTC) | 1.5% | - |
| Hashdex Bitcoin (DEFI) | 0.9% | - |
And What About An Ethereum ETF?
With a spot Bitcoin ETF now imminent, anticipation of an spot Ethereum ETF being approved and the path to an Ether ETF seems more probable than ever. BlackRock, a major player in traditional finance, has already filed an S-1 form with the SEC for its iShares Ethereum Trust, a spot ether ETF. This move indicates a strong interest from institutional investors in Ethereum-based products. Learn more about Ethereum blockchain.
Recently, Ether traded over $2,400, marking a 5% increase within 24 hours. This rise contrasts with Bitcoin's 2.2% decline in the same period, partly due to volatility caused by fake tweets from a hacked U.S. Securities and Exchange Commission account.
See: The Race for Ethereum Futures ETF Applications
The optimism isn't limited to Ether alone. Tokens of applications built on Ethereum, like Lido's LDO and RocketPool's RPL, have also experienced significant gains. Layer 2 networks, which operate atop Ethereum but as independent blockchains, have seen their tokens, such as Mantle's MNT and Optimism's OP, increase in value. This trend reflects a broader market movement, anticipating the potential of an Ether ETF.
In Anticipation
While the financial world debates the anticipation of the SECs approval of various spot Bitcoin ETFs, the SEC's account hack serves as a critical reminder of the importance of cybersecurity in the financial sector. Stay tuned. More to come...
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