SEC warns against FOMO in the face of spot Bitcoin ETF approval
The SEC has issued a report cautioning investors about the fear of missing out (FOMO) when it comes to digital assets. The regulatory authority emphasized that cryptocurrencies can be overwhelming and complicated to understand, urging investors to be cautious and not make investment decisions solely based on recommendations from influencers or celebrities. This warning comes as the possibility of spot Bitcoin ETF approvals increases.
SEC’s history of rejecting ETF filings
The SEC has a long history of rejecting filings for spot Bitcoin ETFs, citing concerns about market manipulation. Despite numerous attempts by asset managers to launch such ETFs since 2013, all filings have been rejected. Bloomberg’s Michael P. Regan believes that the ongoing battle between Coinbase and the SEC could further complicate the approval process or potentially cause delays.
Will January 11 mark the launch of a Bitcoin ETF?
There are speculations that the SEC commissioners will vote on the approval of Bitcoin ETFs in the coming week, with sources suggesting a potential launch date of January 11, 2024. Reuters also reported that discussions between SEC officials and stock exchanges have been positive, indicating progress towards a spot ETF approval early in the week starting January 8.
Hot Take: SEC’s sarcastic comment dampens positive expectations
The recent sarcastic comment from the SEC warning investors about digital asset FOMO has dampened positive expectations surrounding spot Bitcoin ETF approvals. As the decision date approaches, there is uncertainty about whether the SEC will grant approval or introduce further complications. This development highlights the ongoing challenges faced by cryptocurrency investors seeking regulatory clarity and institutional acceptance.
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