The crypto industry is in a hangover of spot Bitcoin ETF approval. Crypto investors and traders on X (Twitter) are filled with excitement over approval as many major updates were made today, including the updated S1 filing of Valkyrie and many others. This resulted surge in Bitcoin price which is trading at $45,000.
Apart from this high anticipation mode, SEC Chairman Gary Gensler has shared his insights on crypto investment as he cautioned investors to keep some important notes in mind as follows.
Compliance with Applicable Laws
Gensler emphasized that some entities offering crypto asset investments and services may not be complying with applicable laws, including federal securities laws. As a result, investors in crypto asset securities may be deprived of crucial information and other essential protections related to their investment. Therefore, investors need to ensure that the entities they are investing with are compliant with all relevant laws and regulations.
Extremely Risky Investments
Gensler also highlighted that investments in crypto assets can be very risky and volatile. Several major platforms and crypto assets have become insolvent or lost value in recent times, whether it is FTX or Genesis. Therefore, investors should be aware of the significant risks associated with investing in crypto assets and should only invest an amount they can afford to lose.
Prevalence of Fraud
Gensler further warned that fraudsters continue to exploit the rising popularity of crypto assets to attract retail investors into scams. These investments are replete with fraud, including bogus coin offerings, Ponzi and pyramid schemes, and outright theft where project promoters disappear with investors’ money. Therefore, investors should be cautious of any unsolicited offers or promises of high returns and should only invest with reputable entities that have a proven track record.\
Spot Bitcoin ETF Recent Updates
Many prominent figures are anticipating Bitcoin ETF and many believe the approval is on the horizon
Is this a sign of Spot Bitcoin ETF Approval?
After Gary Gensler shared his insights on X (Twitter) investors reacted hilariously as some believed it might be a definite sign of ETF approval by the SEC and some criticized him. Coinbase Chief Legal Officer Paugrewal reacted to Gary’s tweet.
Gensler’s tweets serve as a timely reminder for investors, that these three major investment guidelines are quite genuine and people in the crypto industry should follow them before making any big investments.
Source: https://coinpedia.org/news/is-gary-gensler-hinting-at-spot-bitcoin-etf-approval/