SEC Reissues Crypto ‘FOMO’ Caution Amid Expectation for Spot Bitcoin ETFs
AI Trading

Social media users have revealed that the ‘no go to FOMO’ caution by regulators comes amidst intensified expectations over spot Bitcoin ETF ratifications.

The U.S. Securities and Exchange Commission (SEC) has again cautioned about FOMO crypto investing just days before the expected spot Bitcoin exchange-traded funds (ETF) approval.

SEC Cautions Retail Investors of Inherent Risks in Digital Assets

In a January 6 X (formerly Twitter) post, the Securities and Exchange Commission’s Office of Investor Education again cautioned retail investors of the risks linked to digital assets. These include cryptocurrencies, meme stocks, and nonfungible tokens (NFTs).

One of the initial appearances of the ‘ Say no go to FOMO’ blog post came on January 23, 2021. It came amid a roaring equities and crypto bull market that resulted in Ether, Bitcoin, and several other altcoins reaching new all-time highs by November of that year. The caution came again around March of the following year when markets were cooling.

AI Trading

Numerous social media users hypothesized that the report could indicate that the Securities and Exchange Commission would soon ratify one or several Bitcoin exchange-traded funds, expecting a verdict sometime before a January 10 deadline.

SEC Warns Against Crypto Endorsements by Celebrities

The caution touched on athletes and celebrities promoting crypto assets, encouraging investors not to make financial verdicts just because famous figures praised an investment opportunity. One might see their beloved entertainer, social media influencer, or athlete promoting such investment opportunities.

Despite the temptation, one should not solely use their recommendations to make investment decisions.

For a long time, the SEC has imposed fines and penalties on celebrities for promoting specific cryptocurrencies. On October 3 last year, Kim Kardashian agreed to pay the Securities and Exchange Commission a $1.26B settlement. This is after being accused of failing to reveal that she received $250000 to promote Ethereum Max (EMAX), a fake token, to her numerous Instagram followers.

Further, the report cautioned investors about the possible unpredictability linked to assets that swing deeply because of ‘influencers and trends.’ It noted that despite being alluring at first, losses mostly pile up rapidly as the market moves on without them.

Crypto Community Keen Interest in Spot Bitcoin ETFs

The reporters asked the readers how they would feel if their investment lost a specific percentage in a day. The crypto sector is presently monitoring the Bitcoin exchange-traded fund space anxiously.

Eric Balchunas, an ETF analyst with Bloomberg, envisages most applicants’ approval will happen this week. Additionally, those who met the SEC’s requirements before December 29 will be ratified within the week.

Editorial credit: JRdes / 

AI Trading produces top quality content for crypto companies. We provide brand exposure for hundreds of companies. All of our clients appreciate our services. If you have any questions you may contact us. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors and the views expressed in them do not reflect the views of this website. Herald Sheets is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.

Michael Scott

By Michael Scott

Michael Scott is a skilled and seasoned news writer with a talent for crafting compelling stories. He is known for his attention to detail, clarity of expression, and ability to engage his readers with his writing.

Leave a Reply

Your email address will not be published. Required fields are marked *