Feb. 15, 2022
As an individual investor whose only exposure to markets has been through my 401K brokerage account, I appreciate the work of the SEC to provide a fair and equitable environment in which I can confidently trade. My 401K provider makes relatively safe and well managed products for individuals without the time or inclination to make informed investment decisions on their own. For many years, this was the wisest option for me. I believe in our current market cycle however, educated investors can and should be taking calculated risks with at least part of their fund. The steady "buy the dip" climb is over. Volatility is a significant tool to realize gains in a flat or declining and volatile market like we will have as things normalize over the next few years. To say that cryptocurrencies in general and Bitcoin in particular are too volatile is insulting, frankly. Of course it's volatile! That is why every investor should have at least some exposure, right? Anyone who doesn't understand that what goes up the proverbial escalator will race down the elevator will eventually be separated from their money no matter what measures the SEC tries to put in place to protect them. Can Bitcoin be manipulated? I know I'm not smart enough to know the answer to that definitively. But let's assume that it can be for argument sake. Given the transparent nature of the block chain and the forensic ability of big data analysis, I am confident that policing a regulated crypto will prove a more effective deterrent than leaving it to trade in the dark. Work on regulation to punish wrongdoers. In the meantime buyer beware, but don't punish me. I have invested small pieces of my 401K in GBTC and in ASTR. ASTR has proven far more volatile and literally crashed last week! If Bitcoin crashed 80%, so what? That's the risk I'm willing to take. What I didn't expect, when I bought GBTC was that my own government would artificially depress the value of my investment by more than 25% effectively punishing me for the transgression of others. Americans want the freedom to trade crypto. Not approving an ETF will not deter them from gaining that exposure. The cow has left the barn. Keeping the barn door locked at this point accomplishes nothing. Instead, it punishes individuals like me holding the only Bitcoin exposure I have in my 401K account. Kevin Charbonneau