The Securities and Exchange Commission Chair, Gary Gensler, has shared some advice with cryptocurrency investors, providing “some things to keep in mind” while the rest of the market waits impatiently for word from the regulator regarding its decision to accept the twelve applications it has received for the first-spot bitcoin ETF.
He stated in a post on X, “Investments in crypto assets also can be exceptionally risky & are often volatile.
He explained that several significant platforms and cryptocurrency assets have either lost value or become insolvent. Cryptocurrency asset investments are still extremely risky.”
The timing of Gensler’s post on X caused some controversy in the cryptocurrency community, even though he made no mention of the proposed ETFs.
His remarks were made just hours after asset managers from Valkyrie, BlackRock, Ark Invest/21Shares, VanEck, WisdomTree, Invesco, Fidelity, and Invesco filed amended S-1 forms for their proposed funds, which was widely perceived as a last step before potential approval.Â
A ruling is anticipated in the next few days, partly due to the SEC’s deadline of January 10th to react to the first two applications in the most recent wave, Cathie Wood’s ARK Investment and 21Shares.
Nonetheless, several analysts have pointed out that the SEC has broad jurisdiction over the procedure and might attempt to postpone a decision once more. There was no indication from Gensler as to what he could be contemplating.
Also Read: SEC Chair Gary Gensler Continues Slapping Crypto Companies
