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The Securities and Exchange Commission said Tuesday afternoon that advertising for bitcoin ETFs on social media was false.
An SEC spokesperson told CNBC: “The SEC's @SECGov .
A false social media post said the SEC approved Bitcoin ETFs. Bitcoin's price rose briefly after the initial publication, but then quickly fell below $46,000.
The SEC is expected to make a decision on bitcoin ETFs this week after opposing it for years. More than a dozen asset managers have applied to create such a fund, including several that filed updated registration statements Tuesday morning.
The price of the largest cryptocurrency has soared in recent months, partly due to growing optimism over the approval of so-called spot bitcoin ETFs. Funds that track bitcoin futures prices are already trading on exchanges in the United States.
Cryptocurrency advocates assert that the launch of Bitcoin spot funds could attract a new type of investor to the digital asset. ETFs are an asset class regularly used by financial advisors. The idea is that advisors and investors who are spooked by the complexities surrounding holding bitcoin will be more willing and able to buy cryptocurrencies in an ETF wrapper.
SEC Chairman Gary Gensler has been an outspoken opponent of cryptocurrencies during his tenure, and the SEC has brought legal action against several major cryptocurrency exchanges.
Correction: An earlier version of this story said the SEC had approved Bitcoin ETFs. The story has been updated to reflect that a false social media post was made.
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