The SEC has reissued a crypto ‘FOMO’ warning on the prospect of spot Bitcoin ETFs.
The United States Securities and Exchange Commission (SEC) has again issued a warning about crypto investment FOMO – just days before the expected spot bitcoin (BTC) exchange was approved.
In a Jan. 6 post to X (formerly Twitter), the SEC's Office of Investor Education warned retail investors about the risks associated with digital assets, including meme stocks, cryptocurrencies and intangible tokens (NFTs).
One of the first manifestations of Bitcoin, Ether (Ether), and many other phones will also capture the new era <የብሎግ ፖስት> It is higher in November 2021. The warning was issued again around March 2022 when the markets will cool down.
#SECINVING Resolution 5: Say “NO GO to FOMO” (fear of missing out). Just because others may buy a certain investment, doesn't mean it's the right opportunity for you. Learn more about finding what's right for you and your investment goals: pic.twitter.com/SGf1z6xmhL
— SEC Investor Ed (@SEC_Investor_Ed) January 6, 2024
Many users on social media have commented that the report could indicate that the SEC will soon approve one or more Bitcoin ETFs, which are currently awaiting a decision sometime before the January 10th deadline.
The warning cited celebrities and athletes promoting crypto assets, urging investors not to make financial decisions just because of an investment opportunity.
“You may see your favorite athlete, entertainer or social media influencer promoting these types of investment opportunities. As tempting as it may be, never make an investment decision based on their opinion.
Over the years, the regulator has hit celebrities with fines and penalties for their role in promoting some cryptocurrencies.
On October 3 last year, Kim Kardashian agreed to pay $1.26 million to the SEC after she was accused of failing to disclose $250,000 to promote a fake token called Ethereum Max (EMAX) to her 360 million Instagram followers.
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The report also warned investors of the potential volatility associated with highly volatile assets due to “trends and influencers”, which, while attractive at first, can often quickly pile up as the market moves without them.
“How would you feel if your investment lost 20, 30 or 50 percent in one day?” the report asked its readers.
The crypto industry is currently watching the Bitcoin ETF space with bated breath. Senior Bloomberg ETF analyst Eric Balchunas predicts most applicants will be approved within a week or at least before Dec. 29 if they meet the regulator's requirements.
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