Bitcoin ETFs trading surges despite SEC chair’s warning: ‘Speculative, volatile asset’

Trading volume on newly approved spot Bitcoin ETFs soared past $5 billion Friday in the second full day since launch — even as SEC Chairman Gary Gensler warned investors to think twice before pouring money into the crypto product.

After years of wrangling over their legality, the SEC approved 11 of the exchange-traded funds this week, including products offered by investment giants Blackrock, Fidelity and Grayscale.

The approvals were seen as a major win for crypto touts who wanted to open the asset to a wider pool of investors.

By buying into the ETFs, investors are acquiring stakes in funds that own bitcoin, rather than buying the tokens themselves.

Gensler indicated he remains highly skeptical of cryptocurrencies during an appearance on CNBC’s “Squawk Box” on Friday.

“Investors should be aware that the underlying asset is a highly speculative, volatile asset,” Gensler said. “Amongst its use cases is really for illicit activity – money laundering and sanctions and ransomware and the like.”