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July 17, 2024
PI Global Investments

Spot Bitcoin ETF: SEC Posts Scoffing Remarks

The spot Bitcoin ETF approval has been the talk of the market and in the middle of the speculations, the SEC has given a scoffing statement about people jumping on the bandwagon of digital assets. The regulatory authority took to planform X and published a detailed report on Saturday warning investors to say no to “FOMO” of “digital assets”.

SEC warns against digital asset FOMO amid spot Bitcoin ETF approval

With the likelihood of approvals increasing, a lot of cryptocurrency investors are looking forward to the licensing of spot Bitcoin ETFs. However, in a twist of events, the SEC has tried to clear its slate on how it perceives the world of cryptocurrencies by publishing a rather jeering report.

The report saw the SEC telling investors to stay away from the FOMO of virtual currencies.  It also talked about how digital assets can be “overwhelming” and “complicated” to understand.

Additionally, the study included details about people making financial decisions based on recommendations.

“You may see your favorite athlete, entertainer, or social media influencer promoting these kinds of investment opportunities. Although it’s tempting, never make a decision to invest based solely on their recommendation.”, SEC added in the report.

SEC’s past tussle on ETF approvals

Approval for a spot Bitcoin ETF has been on the cards for the past ten years. However, each time SEC has rejected all filings that crossed the tables. Multiple asset managers have applied for permission to launch spot bitcoin ETFs since 2013, but the SEC rejected them, arguing the products would be vulnerable to market manipulation.

Even recently, Bloomberg’s Michael P. Regan believes that the battle between the largest crypto trading platform Coinbase, and SEC could result in a hesitance in a smooth approval of spot-Bitcoin ETF or a possible delay in the process.

SEC’s sarcastic comment like the one posted today when the possible decision date is around the corner could drag all the positive expectations into the doldrums.

Will January 11 be the final Bitcoin ETF Launch?

Earlier, CoinGape reported that the SEC commissioners would hold a vote on the approval of Bitcoin ETFs early in the next week.  Adding to the same fuel, a Bloomberg Intelligence analyst, quoted sources saying that the SEC officials are preparing all the applicants for a Bitcoin ETF launch on January 11, 2024.

Following the suit, Reuters quoted executives and representatives of five investment management firms stating that the final discussions involving SEC officials and stock exchanges happened in the right direction towards a spot ETF approval early in the week starting January 8.




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