The SEC has officially released a statement on their website saying that they will be denying all ETF approvals. Their reasoning for the rejection is the market manipulation witnessed by the SEC Twitter account falsely tweeting that the ETF had been approved. Gary Gensler was quick to point out that the approval had not actually happened, and that he was trying to teach traders a lesson on how their leveraged trades could be wiped out instantly due to false or incorrect information shared on Twitter. "Us at the SEC did this to show the community how easily the market could be and is manipulated by fake information. There is a ton of fraud in the Bitcoin market, which we have now ourselves contributed to in order for you to understand why we cannot approve the ETF," Gensler said in a following tweet.
It is common practice for individuals to claim their social media accounts have been hacked as an out for spreading dangerous misinformation or tweeting after they got a little drunk. Anonymous hackers are always a great scape goat as it generally sounds plausible and scary, but in a unique situation, the SEC has taken ownership for their blunder. This information still has not been widely circulated as many influencers jumped on the chance to get as much clout as possible by spinning up Twitter spaces about the topic.
All of this has been incredibly disappointing the influencers who were hoping for the price to go up so their engagement would go up. Many were speculating that once the ETF approval had been granted, the going price for buying influencers at the influencer auction house would have sky rocketed by 100x. Unfortunately, most influencers are stuck in a position of begging to scraps until the halving when the natural Bitcoin price progression upwards will continue.
Apparently the SEC manipulating not only the Bitcoin market, but also the emotions of everyone paying attention, is truly a sell the news event...