"Can't the SEC chairman sit still? It's fun to scare people."
Securities and Exchange Commission (SEC) Chairman Gary Gensler posted a statement on social media platform X as many asset managers await a final decision on the approval or denial of spot Bitcoin (BTC) ETFs.
Explained further, Gensler called on cryptocurrency investors to keep several things in mind as asset managers who offer cryptocurrencies may not comply with federal securities laws and this means digital assets can be very risky or volatile.
As a result, fraudsters will continue to exploit retail investors through the increasing popularity of crypto, commented Gensler, adding that the investment may continue to be filled with fake coin offers, ponzi schemes and outright theft where project promoters disappear with investors' money.
His statement was made after several spot BTC ETF producers filed an amended S-1 application with the SEC which is one of the last steps towards approving ETFs in the United States (US).
As spot BTC ETF applications have been stalled for years, many have criticized the SEC after the regulator in Canada has allowed firms to list ETFs on exchanges from 2021.
In August 2023, a federal judge ordered the SEC to review a spot BTC ETF application from Grayscale after claiming the commission was capricious in denying the investment.
On the other side, VanEck who took a decisive step has made an initial investment of $72.5 million as disclosed in the amended S-1 form while Bitwise will contribute $500,000 and Pantera Capital will contribute $200 million to the fund if it gets approval for spot BTC ETF.
Not only that, BlackRock which is an important player in the financial industry also refuses to be left behind where they have made an initial investment of $10 million.
