- Gary Gensler called crypto a “highly speculative asset class.”
- Bloomberg analyst Eric Balchunas said that volatility isn’t a bad thing for Bitcoin.
- Gensler also refused to comment on the approval of a spot ETH ETF in the US.
Gary Gensler, the Chairman of the United States Securities and Exchange Commission (SEC), has warned investors regarding investing in Bitcoin (BTC), comparing its volatility with a roller coaster in an interview with Bloomberg.
Notably, Gensler was asked about Ether’s (ETH) categorization as a security or commodity. “Any one of these crypto tokens is about the facts and circumstances as to whether the investing public is anticipating a profit based on the efforts of others,” said the SEC Chair.
Gensler, who has been termed a “political liability,” acknowledged that his agency has multiple ETH ETF filings but refused to comment on the same while adding:
This is a highly speculative asset class. One could just look at the volatility of Bitcoin in the last few days … You really should be conscious as the investing public that this is a bit of a roller coaster ride on these volatile assets.
Eric Balchunas, a senior Bloomberg Intelligence ETF analyst, noted that BTC’s volatility isn’t necessarily a bad thing while adding that investors in ‘passive’ assets have to wait “30yrs so they looking for a little roller coaster-y hot sauce to add on top to cure boredom/FOMO etc.”
In an article titled ‘Passive Investors: Here We Are Now, Entertain Us,’ Balchunas highlighted that “shiny object” ETFs like spot BTC ETFs are capable of distracting investors “from the patience required to unlock the magic of compounding returns that a low-fee index fund can provide.”
Balchunas also pointed out that most investors are using spot Bitcoin ETFs as “a small “hot sauce” allocation on top of a cheap beta core,” which gives them a higher appetite for volatility.
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