The prospect of bitcoin exchange traded funds leaves cryptocurrencies teetering on the cusp of mainstream respectability. A fake post this week claiming regulatory approval again illustrates the proliferation of crypto scams. It is certainly an argument against using social media for market-moving announcements. But it is unlikely to derail the funds.
On Tuesday, the US Securities and Exchange Commission was forced to refute a post on its X account that claimed it had approved the listing of spot bitcoin ETFs. Gary Gensler, SEC chair, used the platform to clarify that the SEC’s account had been “compromised”. The price of bitcoin, which had jumped 2 per cent, promptly fell more than 3 per cent.
Crypto purists envisage a decentralised financial world without tedious oversight from governments and regulators. More pragmatic bitcoin holders see regulators as the key to larger digital asset markets and thus higher prices.