The Securities and Exchange Commission has cited market manipulation risk as a major reason for caution in the months and years it has debated whether or not to approve a bitcoin spot ETF. It was therefore ironic that yesterday, the SEC itself was the victim of this very threat.

Around 4 p.m., a tweet appeared from the SEC X account (Twitter). ET that the SEC had approved the application. Gary Gensler, the Chair of the Commission, then announced shortly afterward that the news had been false and the X Twitter account had been hacked.

This is an extract from The Node, a daily summary of the most important crypto news on CoinDesk. Subscribe to the full newsletter by clicking here.

The @SECGov Twitter account was compromised and an unauthorized Tweet was posted,” Gensler said on his own account.

Unknown to date, someone had gotten the SEC’s phone number for account verification. According to the “Safety Team” at X the SEC didn’t have two-factor authentication on its X.

Crypto Twitter was a roaring success, with many commenters calling out the dual standard.

BTC Price Index and Live Chart – CoinDesk”>(BTC) briefly rose on the news (above $47,500) only to fall before its level at the time of the fake news (below $45,000). CoinDesk reports that there was a massive liquidation. This could be a good indicator of how the real announcement, expected today, might affect the market. The announcement of an exchange-traded funds may be a sell-the-news event, and the price increases we have seen over the past few months are likely due to excessive expectations about the leading cryptocurrency.

The SEC’s gaffe may prove its point that unregulated, nascent markets are vulnerable to malicious actors. The SEC is the main target of the joke. You’d think the SEC, the world’s most powerful financial regulator, would be cautious enough to double lock a social media profile with such influence. Wouldn’t you?

The fake Bitcoin ETF news is not the first time that false ETF announcements have moved the markets. The October error tweet by Cointelegraph also drove bitcoin higher. Both incidents show how much demand there is for this announcement. Crypto enthusiasts believe that institutions such as BlackRock and Fidelity will invest billions once they get their applications approved. Many people see similarities with the introduction gold ETFs early in 2000s which caused the gold price to skyrocket, at least over the long-term.

We’ll soon know what the impact will be. I think we’ll have a brief spike in price before normalcy returns. It seems that expectations are more thrilling than reality.

Remember, ETFs, while standard investment products are not manna from heaven, they do have a lot of potential. We might see a gradual increase in bitcoin demand and prices, but no flood of new milestones. It took years for gold, (if you check), to become a popular investment. It’s also likely that bitcoin will be treated the same way. The hype surrounding the ETF announcement still shows that many people want to create a positive narrative in order to push bitcoin higher. This is more important than the impact of ETFs. After the recent crypto scandals, falls and crashes, it’s important to have positive news about the cryptocurrency market.

Daniel Kuhn is the editor.