MicroStrategy's Bitcoin Investment Scores Big; SEC Chair Warns of Crypto Risks Amid ETF Anticipation
Summary:
MicroStrategy's investment in Bitcoin has yielded nearly $1 billion in profits in 2024. Simultaneously, SEC Chair Gary Gensler has reiterated warnings about the risks of crypto investments, amid anticipation of the approval of the spot Bitcoin ETF. The article also mentions speculations that the SEC could approve one or more spot Bitcoin ETFs, with a decision expected by or before January 10.
The strategic acquisition of Bitcoin (BTC) by MicroStrategy has yielded lucrative returns so far in 2024. On the flip side, Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), recently urged caution towards crypto investment on the X platform. Additionally, the watchdog has repeated investment warnings about crypto "FOMO", in the days leading up to the expected approval of the spot Bitcoin ETF.
MicroStrategy's investment in Bitcoin has brought in nearly $1 billion in profits this year, as per sector figures. According to Bitcoin Treasuries, the firm's BTC portfolio has grown by over $800 million within the first nine days of this year. The company currently holds 189,150 BTC, with its most recent purchase made on December 27.
Michael Saylor, the previous CEO and current chair, has seen his own Bitcoin trove grow by close to $3 billion. Saylor's personal possession of over 17,000 BTC makes him one among the biggest Bitcoin holders globally. Currently, Bitcoin's price is fluctuating just under $47,000, in anticipation that the U.S. SEC will approve a spot BTC ETF soon.
SEC's Gensler has sounded the alarm over the risk of injecting funds into cryptocurrencies, as the approval of a spot Bitcoin ETF is possibly on the horizon. In a post on X dating January 8, Gensler stressed that crypto investing can be "extremely risky" and "often unstable" without directly referring to a Bitcoin ETF.
Gensler noted the continued use of the growing appeal of crypto assets by fraudsters to entice small-scale investors into fraudulent schemes. He stressed that these investments are plagued with fraudulent activities such as fake coin offerings, Ponzi schemes, pyramid scams, plus blatant theft where a project runner absconds with the investors' funds. The SEC has not approved a spot Bitcoin ETF yet, albeit many applications have been revised and presented to the commission.
In the days leading up to the expected approval of spot Bitcoin ETFs, the SEC has once again warned against the FOMO mentality towards crypto investments. On January 6, the SEC's Office of Investor Education reminded retail investors through a post on X (previously known as Twitter) about the risks attached to digital assets, meme stocks, cryptocurrencies, and non-fungible tokens (NFTs).
The prominent emergence of the "Say no to FOMO" blog post was back on January 23, 2021, during a strong bull market for crypto and stocks. Bitcoin, Ether (ETH), and multiple other altcoins achieved new all-time price peaks by November 2021. The warning came up again approximately in March 2022, as the markets started to simmer down.
Several social media users have speculated the warning could mean the SEC is on the verge of approving one or more spot Bitcoin ETFs, anticipated to reach a decision by or before January 10.
Information provided in this article is for general knowledge only and doesn't serve as financial advice. Investment and trading activities involve risks, and readers are advised to perform proper research before making any financial decisions.
Published At
1/9/2024 10:14:09 PM
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