As the approval of the Bitcoin spot ETF is expected to be listed this week, Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), tweeted today to issue a risk warning for cryptocurrency investments. This is considered by the market as another sign that the Bitcoin spot ETF may be approved.
The application for the Bitcoin spot ETF has reached a critical moment, and the SEC will decide whether to reject or approve the application of Ark Investment/21Shares for the Bitcoin spot ETF before January 10. 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 critical moment, Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), tweeted today to remind investors considering investing in cryptocurrencies to pay attention to the following points:
1. 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.
2. Investments in cryptocurrencies may also carry extremely high risks and are often highly volatile. Many major platforms and cryptocurrencies have gone bankrupt and/or lost value. Cryptocurrency investments continue to face significant risks.
3. 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, including counterfeit token issuances, Ponzi schemes, pyramid schemes, and project initiators disappearing with investors’ money.
It is worth noting that the SEC previously issued risk warning alerts before the approval of Bitcoin futures ETF. Therefore, the above reminder by Gary Gensler is considered by the market as another sign that the Bitcoin spot ETF is about to be approved.
Eleven issuers, including BlackRock, submitted the S-1 amended 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 SEC commissioners. Although there is no arrangement on SEC’s public agenda before January 11, SEC can make decisions using its authorization policy without necessarily voting.
Eric Balchunas expects that most applications, or at least those that meet SEC requirements, submitted before December 29 will be approved this week. After SEC releases the first ETF application, a decision may be made on Grayscale’s GBTC conversion to Bitcoin spot ETF.
Previously, the SEC’s Office of Investor Education reissued a warning on January 6 about not FOMO-ing into cryptocurrency investments, reminding retail investors to pay attention to the risks associated with digital assets and mentioning meme stocks, cryptocurrencies, and NFTs in the article.
This article was first published on January 23, 2021, when cryptocurrencies were in a bull market. The SEC later re-shared this article when the market fell in March 2022. Now, the SEC has reissued the old article, which is also considered by the market as seeking 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 is tempting, it is never advisable to make investment decisions based solely on recommendations. Many trend-driven investments experience significant fluctuations.
Related reports:
– Will the SEC approve the Bitcoin spot ETF without public announcement before January 11?
– Comprehensive review of fees for Bitcoin spot ETFs: Ark Invest/Bitwise initially priced at an “8% premium,” while this issuer is 7 times more expensive than others.
– BlackRock expects ETF to be approved on January 10? VanEck: Preparing to issue a $2 billion BTC Bitcoin spot ETF in the first week according to rumors.