CNBC's Jim Cramer on Wednesday explained what the Securities and Exchange Committee's decision to approve spot bitcoin exchange-traded products in the U.S. means for investors.
Cramer said he's not necessarily against investing in Bitcoin, but warned investors to know the risks before buying.
"I'm taking a page from Jamie Dimon here — this is a caveat emptor situation," he said, referring to the JPMorgan CEO and Bitcoin skeptic. "You can make up your own mind about what to do with these spot Bitcoin ETPs, I just want to make sure you know what, exactly, you might be putting your money in and how little went into these funds versus how much Bitcoin went up."
ETPs include several investment vehicles, such as exchange-traded funds and exchange-traded notes. The SEC's move will give regular investors more access to cryptocurrency — a notoriously erratic asset — and may help to carve out its place in mainstream finance.
Cramer stressed that the SEC's approval does not mean the organization endorses these products. SEC Chair Gary Gensler has spoken out against crypto in the past and the agency disapproved more than 20 filings for spot Bitcoin ETPs from 2018-2023.
"Now, that said, I'm not as stridently against these new investment vehicles as Gary Gensler is," Cramer said. "At this point, Bitcoin's been around for 15 years, it's fairly well-established, and I don't want to try to stop anyone from speculating in this stuff, as long as they do their research. Of course, I'm not totally sure what your research would be, but that's not my problem."
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