The SEC recently reissued a warning about FOMO (fear of missing out) crypto investing, just days before the expected approval of spot Bitcoin ETFs (exchange-traded funds). In January 2024, the SEC’s Office of Investor Education cautioned retail investors about the risks of digital assets like crypto, NFTs, and meme stocks.
Social media users pointed out this warning comes amid heightened anticipation over Bitcoin ETF approvals. A similar warning was issued in January 2021 during a crypto bull market and again in March 2022 as markets cooled. Some believe the timing suggests approvals are imminent.
The warning mentioned celebrities promoting crypto, telling investors not to make decisions based solely on recommendations from popular figures. The SEC has fined celebrities like Kim Kardashian for improperly promoting cryptocurrencies.
The report also warned of volatility from assets swayed heavily by trends and influencers. It asked readers how they would feel if investments lost 20-50% overnight.
The crypto industry eagerly awaits Bitcoin ETF decisions before a January 10th deadline. Analyst Eric Balchunas predicts most applicants meeting SEC requirements will be approved this week. The SEC’s timely warning highlights regulatory concerns while signaling hopeful news may come soon for Bitcoin ETFs.
