Apparently, Twitter has silently replaced TinyURL as its default URL shortening service with bit.ly, a competing service that launched quite recently and not too long ago raised $2 million from several prominent angel investors.

Betaworks, the startup accelerator behind Twitter related companies such as Summize (acquired by Twitter in July 2008), is also behind bit.ly, and it just happens to also count early Twitter investors and advisors Chris Sacca and Ron Conway as their own backers.

does the move signal Twitter paving the way for an outright acquisition of the URL shortening service provider?