Bitcoin ETFs are the biggest debate in the crypto world right now. From the US regulator to the point of hacking X’s account. The United States Securities and Exchange Commission, better known as the SEC, has a pending decision on whether to approve them or maintain its bloc. The possibility of a rollback has been considered for months, although the US regulator has so far remained reticent.

We explain why this decision was so anticipated, what ETFs are and what they might be in the future. It’s been several years since the SEC first decided to block ETFs, but after several lawsuits and court decisions, the Gary Gensler-led body may change its mind.

ETF: Bitcoin exchange-traded funds. Bitcoin ETFs (Exchange Traded Funds) are exchange-traded funds. Investment funds through which interested parties can gain exposure to Bitcoin’s values, but without the need to directly buy or sell the cryptocurrency on exchanges.

Rather than being funds that track stocks or other assets, they track the price of Bitcoin based on futures contracts. This has a key advantage and is that it allows you to exchange cryptocurrencies or invest in Bitcoin in a regulated and simple way, without having to worry about wallets or all the tools normally associated with cryptocurrencies.

We have been waiting for the SEC’s decision since August. Last August, the SEC lost its case against Grayscale. The District of Columbia Court stated that Grayscale could work with Bitcoin ETFs. This judicial decision put on the table the possibility of the SEC regulating and accepting ETFs in a general way; because the court had already supported their legality.

Since then, the crypto industry has waited for months and the cryptocurrency’s value has increased to exceed $45,000 by the beginning of 2024.

And just as that day was about to come… His SEC account was hacked. A day ahead of schedule, the SEC’s X account posted a tweet announcing the SEC’s approval for Bitcoin ETFs. A few minutes later, SEC chairman Gary Gensler said: rejected the decision He announced that X’s SEC account was hacked.

The SEC will need to investigate his tweet. The function of this body is to verify that the market is not manipulated. And this is exactly what could have happened in the case of hacking and fake publication that Bitcoin ETFs will be approved. They point out from Fox Business.

It didn’t take long for many companies and individuals in the crypto and technology industry to react. Cameron and Tyler WinklevossGemini’s co-founders criticized the SEC for manipulating the market. Edward Snowden He also criticized Gary Gensler, stating that he “only has one job”.

What consequences will the approval of ETFs have? Expectations are high regarding its approval. A decision by the SEC in this direction will make it easier for corporate money and large companies to enter the industry. One of them is financial giant BlackRock, which already has a list of potential candidates.

In total, there are approximately 2,000 ETFs in the United States, holding approximately $6.4 trillion in securities. This amount could be much higher if regulated by the SEC; because this would allow investors from the world of traditional finance to bet on Bitcoin in a way equivalent to what they would do on any company.

The decision is already expected (and positive). The deadline for the SEC to make a decision is January 10, as it is the deadline by which ARK Investments and 21Shares must receive approval of their applications. These are two mutual funds that filed requests with the SEC. Giants like BlackRock and Fidelity are also waiting.

According to Watcher.Guru, Bloomberg Intelligence believes there is a 90% chance that the SEC’s decision will be positive towards Bitcoin ETFs. This would be a major victory for the cryptocurrency industry and its comparison with the world of traditional finance.

Image | Michael Fortsch

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