Investing in cryptos: Be mindful of high volatility, regulatory overhang

Potential investors should be mindful of regulatory overhang and high volatility

The United States (US) markets regulator, the Securities and Exchange Commission (SEC), recently gave its approval to spot exchange-traded funds (ETFs) that will invest in Bitcoin. The leading cryptocurrency, which is trading at over $46,000 currently, has rallied about 153.2 per cent over the past year.      

Factors driving the upsurge

SEC approval: BlackRock, Invesco, Fidelity, and several other players have received approval for spot ETFs.

“The Bitcoin ETF approval is a landmark decision that will legitimise Bitcoin and cryptos as an asset class. It also marks the beginning of easy access for institutional capital to this space,” says