'Fake News on US Bitcoin Spot ETF Approval' Investors Cry Out (Summary)

US SEC X Account Hacked
Spot ETF Approval News Spreads Rapidly
Price Plummets to Around 60 Million Won

＜Bitcoin Daily Price Trend＞ As of January 10. Unit: KRW. Source=CoinMarketCap

The price of Bitcoin, the leading virtual asset, showed high volatility due to fake news about the approval of a Bitcoin spot exchange-traded fund (ETF). The price, which had surged to 63 million KRW, plummeted immediately after the false information was revealed, dropping to the low 60 million KRW range.

According to CoinMarketCap as of 9:12 AM on the 10th, the price of Bitcoin was recorded at 60.81 million KRW. It fell 1.87% compared to one day ago but rose 2.57% compared to seven days ago. Compared to one year ago, it increased by 167.96%. Bitcoin's price peaked at 63.27 million KRW around 6 AM Korean time but soon dropped to 59.99 million KRW, breaking the 60 million KRW mark during the trading session.

On the 9th (local time), reports emerged that the U.S. Securities and Exchange Commission (SEC) had approved a spot ETF for the cryptocurrency Bitcoin. Reuters and Sputnik News cited the SEC's social media X (formerly Twitter) account, reporting as breaking news that the SEC had approved the Bitcoin ETF.

However, shortly after the report, SEC Chairman Gary Gensler stated that the SEC's X account had been hacked and that the SEC had not approved a Bitcoin spot ETF. The hacked posts were deleted from the SEC's official account, and a clarification was posted stating, "An unauthorized post was made. The SEC has not authorized the approval of a spot ETF."

The market expects the U.S. SEC to approve the listing on the 10th. Virtual asset investment firm Grayscale previously won a lawsuit against the SEC, which had rejected the spot ETF approval, in August last year. Many anticipate that the SEC will have no choice but to grant approval this time. Thirteen asset management firms, including global asset manager BlackRock Asset Management, are awaiting the SEC's decision. Approval of the ETF could lead to institutional capital inflows, increasing global liquidity and driving price rises. According to foreign media such as Fox Business, last week the SEC received supplementary documents from applicants, reviewed them, and met with exchanges such as Nasdaq and the New York Stock Exchange (NYSE). However, Chairman Gensler issued a series of warning messages on his personal X account, saying, "If you are considering investing in virtual assets, keep a few things in mind," and "Virtual asset securities are packaged as new opportunities but carry serious risks."

Investors are angry, demanding that the government take responsibility for investment losses caused by the hacking. On the SEC's official X account that day, comments such as "The government imposes fines equivalent to $100 million or more when other investment banks make mistakes that disrupt the market. How will you make up for this?" were posted. Charlie Gasparino of Fox Business reported on his personal X account that a securities lawyer told Fox Business that since Bitcoin's price fluctuated due to the hacked tweet, the SEC should conduct a ‘self-investigation’ into whether market manipulation occurred.