In a cautionary move amid the impending approval of a spot Bitcoin ETF, the United States Securities and Exchange Commission (SEC) has issued a warning against succumbing to the Fear of Missing Out (FOMO) when it comes to cryptocurrency investments.
In a recent tweet SEC’s Investor Education emphasize the pitfalls of making investment decisions merely based on the fear of missing out on potential gains.
#SECInvestingResolution 5: Say “NO GO to FOMO” (fear of missing out). Just because others might buy a particular investment, doesn’t mean it’s the right opportunity for you. Learn more about finding out what’s right for you and your investing goals: https://t.co/fixDWoNFrF pic.twitter.com/SGf1z6xmhL
— SEC Investor Ed (@SEC_Investor_Ed) January 6, 2024
The educational resource, dubbed “NO GO to FOMO,” initially surfaced at the beginning of 2021 during the bull market. Its resurgence in March 2022, more than a year later, coincided with a period of market calm as investors contemplated divesting their tokens.
The SEC’s message is clear: “Just because others around you might be buying into these kinds of opportunities, it doesn’t mean you have to. Not every investment opportunity is right for everyone. Resist temptation and remember our phrase, ‘NO GO to FOMO.‘”
Speculation surrounds the timing of the SEC’s renewed warning, with some interpreting it as a potential precursor to the approval of a spot Bitcoin ETF.
Industry observers posit that such approval could trigger a surge in market activity, driving increased interest and adoption of digital assets. Amidst this anticipated surge, fringe crypto assets may present attractive pricing and opportunities, but they also carry inherent risks for investors.
To guide investors toward sounder practices, the SEC advocates for a focus on market dynamics rather than succumbing to influencer and celebrity endorsements.
