The Securities Exchange Commission (SEC) Office of Investor Education and Advocacy issued an announcement Monday urging investors to consider the risks associated with Bitcoin and Ethereum exchange-traded products (ETPs), including exchange-traded funds (ETFs). The SEC noted that investors should understand that Bitcoin and Ethereum are highly speculative investments. This includes risk exposure through exchange-traded products (ETPs). Investors should consider the volatility of Bitcoin and Ethereum prices. The SEC has warned that spot bitcoin and ethereum ETPs carry risks such as price volatility and the potential for fraud in an unregulated market. The securities watchdog stressed that "spot bitcoin and ethereum ETPs are not registered as investment companies under the Investment Companies Act of 1940". As a result, they lack the protections for asset custody and valuation that apply to ETFs and mutual funds.