As the Bitcoin spot ETF is expected to be approved for listing this week, Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), tweeted today to issue a risk warning regarding cryptocurrency investments. This is seen by the market as another sign that the Bitcoin spot ETF may be approved.
With the application for the Bitcoin spot ETF entering a critical moment, the SEC will decide before January 10th whether to reject or approve the application from Ark Investment/21Shares. Currently, a total of 14 asset management institutions are seeking to issue Bitcoin spot ETFs, and it is widely believed that the SEC will approve multiple ETFs simultaneously.
At this crucial moment, Gary Gensler, Chairman of the SEC, tweeted to remind investors who are considering investing in cryptocurrencies to pay attention to the following points:
– Those who provide cryptocurrency investment/services may not comply with applicable laws, including federal securities laws. Cryptocurrency securities investors should understand that they may be deprived of key information and other important protections related to their investments.
– Investments in cryptocurrencies may also carry extremely high risks and are often highly volatile. Many major platforms and cryptocurrencies have become bankrupt and/or lost value. Cryptocurrency investments continue to face significant risks.
– Fraudsters continue to take advantage of the increasing popularity of cryptocurrencies to lure retail investors into scams. These investments are still filled with fraudulent activities such as counterfeit token issuances, Ponzi schemes, pyramid schemes, and project initiators disappearing with investors’ money.
It is worth noting that the SEC previously issued risk warnings before approving Bitcoin futures ETFs. Therefore, Gary Gensler’s above-mentioned reminder is considered by the market to be another sign that the Bitcoin spot ETF is about to be approved.
Eleven issuers, including BlackRock, submitted the S-1 amendment documents for the Bitcoin spot ETF to the SEC before the final deadline last night. Bloomberg ETF analyst Eric Balchunas previously pointed out that the next stage of the decision-making process will be the vote of the SEC commissioners. Although there are no scheduled arrangements on the SEC’s public agenda before January 11th, the SEC can make decisions using its authorization policy without necessarily voting.
Eric Balchunas expects that most applications, or at least those that meet the SEC’s requirements and are submitted before December 29th, will be approved this week. After approving the first ETF application, the SEC may make a decision on Grayscale’s GBTC conversion to Bitcoin spot ETF.
Previously, the SEC’s Office of Investor Education reissued a warning on the 6th about the dangers of FOMO (Fear of Missing Out) cryptocurrency investments, reminding retail investors to be aware of the risks associated with digital assets and mentioning meme stocks, cryptocurrencies, and NFTs.
This article was first published on January 23, 2021, when cryptocurrencies were in a bull market. The SEC later shared this article again in March 2022 when the market declined. Now, the SEC has reissued the old article, which is also seen by the market as a request to issue a risk warning before the approval of the Bitcoin spot ETF.
The article mentions that investors may see their favorite athletes, artists, or influencers promoting such investment opportunities. Although it may be tempting, it is never advisable to make investment decisions based solely on recommendations. Many of these trend-driven investments experience large fluctuations.
Related reports:
– SEC Unveils! Approve Bitcoin Spot ETF before 1/11 without a vote?
– Bitcoin Spot ETF Fee Summary: Ark Investment, Bitwise initially zero-cost to seize the market, while this issuer is 7 times more expensive than others?
– BlackRock expects ETF to pass on 1/10? VanEck: Preparing to issue $2 billion worth of Bitcoin spot ETF in the first week according to rumors.