- This comes days before the expected approval of spot Bitcoin ETFs.
- A number of social media users have speculated a spot Bitcoin ETFs approval soon.
The SEC has once again issued a warning on the fear of missing out (FOMO) while investing in cryptocurrency, and this comes days before the expected approval of spot Bitcoin ETFs. Digital assets, such as meme stocks, cryptocurrencies, and NFTs, pose dangers to ordinary investors, according to a Jan. 6 post on Twitter by the SEC’s Office of Investor Education.
In the midst of a raging crypto and stocks bull market that saw Bitcoin, Ether, and several altcoins hit new all-time highs by November 2021, the “Say no go to FOMO” blog article made an early debut on January 23, 2021. When markets began to decline in March of 2022, the warning was reissued.
All Eyes on SEC
A number of social media users have speculated that the post indicates that the SEC will soon approve one or more spot Bitcoin ETFs, which are now awaiting a decision before a deadline of January 10th.
Investors should not base their financial choices only on the endorsement of well-known personalities, such as sports or celebrities, for crypto assets, the warning said. Fines and penalties have been levied on celebrities by the authorities for their roles in endorsing certain cryptocurrencies throughout the years.
The report also cautioned investors against assets whose value is highly dependent on “trends and influencers,” stating that these assets may seem attractive at first, but that losses may accumulate rapidly when the market continues to function independently of them.
The Bitcoin ETF market is now receiving a lot of attention from the crypto sector. Most applications will be authorized within the week, according to senior Bloomberg ETF analyst Eric Balchunas.
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