- The SEC is cautioning against FOMO days before it approves Bitcoin ETF proposals.
- The regulator warned investors against memecoins and cryptocurrencies.
- The SEC’s timing of the report could suggest an approval is in the books.
As key players successfully clear one of the final steps in the SEC’s approval process, excitement permeates the crypto atmosphere in anticipation of January 11, potentially when the regulator announces its decision on Bitcoin ETFs.
However, while everyone toasts to the SEC’s imminent approval of the ETF, the commission urges investors to exercise caution.
Say No Go to FOMO, the SEC
The US Securities and Exchange Commission (SEC) has again issued a cautionary warning to investors about FOMO-driven crypto investing, just days ahead of its potential approval of the highly-anticipated Bitcoin ETF.
In a January 6 post titled ‘Say no go to FOMO,’ SEC director Lori Schock advised investors against succumbing to the increasing interest in digital assets and meme stocks, particularly cryptocurrencies, coins, tokens offered in ICOs, and NFTs.
Schock emphasized the importance of not basing investment decisions solely on recommendations from celebrities, including athletes, entertainers, and social media influencers. The SEC director further elaborated on various risks inherent in the crypto market, including market swings, volatility, and more.
While the SEC advocates for caution, some users speculated that the timing of the report could hint at the imminent approval of the Bitcoin ETF .
On the Flipside
- One of the first appearances of the “Say no go to FOMO” blog post came on January 23, 2021, during the historic crypto bull run when Bitcoin set its all-time high.
- Bloomberg analyst James Seyffart asserts Bitcoin Spot ETF has a 95% chance it will be approved on January 10.
Why This Matters
The SEC’s advisory on FOMO comes at an important time. Drawing insights from the crypto bull run of 2021, the regulatory body is adopting a measured approach, urging investors to exercise prudence in their decision-making.
Will the SEC Approve Bitcoin ETFs this week?:
Bitcoin ETF Approval Odds Now 95%, Bloomberg Analyst Claims
What is FOMO?:
Crypto Abbreviations: Blockchain Acronyms You Need to Know
