Bitcoin rallies then crashes after ETF approval post from ‘compromised’ SEC account

Bitcoin gained then lost 3% in moments after a “compromised” SEC account posted fake news about bitcoin ETF approvals

January 9, 2024 05:02 pm

Bitcoin gained close to 3% Tuesday afternoon in the minutes after the US Securities and Exchange Commission’s X account posted that bitcoin exchange-traded funds had been approved.

The SEC later denied the veracity of the post, saying it had not yet granted approval for the products and its account had been “compromised.”

Newsletter

Subscribe to The Breakdown

Bitcoin (BTC) spiked to $47,893 just after 4 pm ET in New York before crashing almost 3% to $46,527.

“The SEC’s @SECGov X/Twitter account has been compromised,” a spokesperson from the SEC told Blockworks. “The unauthorized tweet regarding bitcoin ETFs was not made by the SEC or its staff.”

Loading Tweet..

The SEC has not historically posted ETF approval news on its X account. Those looking for the most up to date information on the status of ETF applications should be checking EDGAR, the SEC’s filing database, a person familiar with the matter said.

The SEC has until Wednesday to approve or deny Ark 21Shares’ bitcoin ETF application.

Should the products get the green light, analysts expect the ETFs to begin trading as soon as Thursday.

Get the news in your inbox. Explore Blockworks newsletters:

The Breakdown: Decoding crypto and the markets. Daily.
0xResearch: Alpha in your inbox. Think like an analyst.

Tags

Newsletter

The Breakdown

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Digital Asset Summit 2026

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

buy tickets learn more

recent research

Research

Kinetiq Protocol: From LST Infrastructure to HIP-3 Deployer

Kinetiq has established itself as Hyperliquid's dominant liquid staking protocol, holding 82.5% of LST market share with $610M in TVL. The protocol is now expanding beyond its kHYPE staking core into higher take-rate verticals: iHYPE for institutional custody rails, Launch for HIP-3 capital formation, and Markets for builder-deployed perpetuals. We view Markets, launching Jan. 12, as the highest-potential product line given its mechanically scalable, activity-linked unit economics. Near-term revenue remains anchored by kHYPE's KIP-2 fee schedule (~$1.6M annualized), while Markets provides embedded optionality if HIP-3 economics normalize post-Growth Mode. KNTQ's setup is relatively clean: zero insider unlocks until November 2026, 6.2% buyback yield from staking revenue, and cleared airdrop overhang. Risks center on unproven Markets execution, declining kHYPE TVL despite ongoing incentives, and competition from Hyperliquid's native initiatives.

by Shaunda Devens