As many expect SEC approval of a spot Bitcoin exchange-traded product to be incoming, the commission’s chair warned crypto investments can be “exceptionally risky” and “volatile.”
United States Securities and Exchange Commission Chair Gary Gensler posted a thread on social media platform X (formerly Twitter) as many asset managers await the final word on approval or denial of their spot Bitcoin (BTC) exchange-traded fund applications.
In a Jan. 8 X post, Gensler called on crypto investors to keep some things in mind without specifically mentioning a spot Bitcoin ETF. According to the SEC chair, asset managers “may not be complying” with federal securities laws by offering crypto investment vehicles, and crypto “can be exceptionally risky” and “often volatile.”
“Fraudsters continue to exploit the rising popularity of crypto assets to lure retail investors into scams,” said Gensler. “These investments continue to be replete w/ fraud- bogus coin offerings, Ponzi & pyramid schemes, & outright theft where a project promoter disappears w/ investors’ money.”
