Former SEC Chairman Gary Gensler has issued a warning about the high risks associated with most cryptocurrencies, specifically stating that they lack fundamental backing. While he considers Bitcoin to be a commodity and distinct from other digital assets, many tokens are considered highly speculative investments. His statements come amidst market volatility and increased institutional interest in digital assets. Gensler highlighted the importance of understanding the fundamentals of cryptocurrencies and emphasized that most tokens don’t have substantial backing or underlying value, making them suitable for short-term trading only. His views align with his concern about the lack of regulation in the cryptocurrency sector, which has contributed to market instability. The shift in institutional sentiment towards digital assets is evident in Vanguard’s recent announcement, where they now offer Bitcoin, Ethereum, XRP and Solana ETFs to their 50 million customers, indicating growing acceptance in traditional financial systems. This move signals a potential change in the dynamics of the cryptocurrency landscape as established financial institutions navigate this new frontier.