Some industry execs like ARK’s Cathie Wood previously predicted that the market is likely to react to ETF approval news by selling in the short term.
The false news on approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) on Jan. 9 triggered the market to respond with a sell-the-news reaction.
On Jan. 9, the official X (formerly Twitter) account of the United States Securities and Exchange Commission published a fake news post saying that the regulator has granted multiple Bitcoin ETF approvals for listing on registered exchanges. SEC chair Gary Gensler subsequently took to X to alert that the SEC account was hacked and that the agency has not approved any spot Bitcoin ETF products.
According to K33 Research analyst Vetle Lunde, the fake news on ETF approval has given a glimpse of how the market could possibly react to actual approval news.
