SEC Warns Against Crypto FOMO Amid Surging Bitcoin ETF Hype

As the countdown to the Bitcoin ETF nears, the SEC warns against FOMO-driven crypto investing.

The judge stuck in between ETF letters.
Created by Kornelija Poderskytė from DailyCoin
  • 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 not basing investment decisions solely on celebrity recommendations, including athletes, entertainers, and social media influencers. The SEC director elaborated on various risks in the crypto market, including market swings, volatility, and more.

While the SEC advocates for caution, some users speculated that the report’s timing 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

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.