The US Securities and Exchange Commission (SEC) warned investors about the risks of mutual funds involved in Bitcoin (BTC) futures.
In an official statement released on Tuesday, The SEC strongly encouraged investors to carefully consider disclosing the risks of a mutual fund in the bitcoin futures market, stressing that bitcoin was a “highly speculative investment”. The agency stressed that investors should be aware of the volatility of both Bitcoin and the futures market for crypto assets, as well as the lack of regulation and possible fraud or manipulation in the underlying Bitcoin market.
“As with any investment in funds, investors should focus on the risk they are taking and the risk they are comfortable taking before investing.” The SEC wrote.
The regulator found that the Bitcoin futures market grew significantly after that The first Bitcoin futures will be traded in December 2017. with an increase in trading volume and open positions. The SEC also announced that it will closely monitor and evaluate mutual funds exposed to Bitcoin futures to ensure compliance with Investment Companies Act and federal securities laws. “Protecting investors and assessing continued compliance with these funds is a top priority for our employees,” the agency said.
In addition, the SEC will closely monitor the impact of Bitcoin futures hedge fund investments on investor protection, capital formation, fairness and market efficiency.
As part of this effort The SEC will also look into whether the Bitcoin futures market could add an exchange-traded fund or ETF. Unlike mutual funds, ETFs “cannot prevent additional investor assets from entering the ETF if the ETF becomes too large or dominant, or if market liquidity begins to decline,” he said.
The news comes weeks later The government agency will postpone its decision on approving the VanEck Bitcoin ETF until June. As previously reported by Cointelegraph, some industry watchers have I believe the US could finally see a Bitcoin ETF in 2021 thanks to Senate endorsement of Gary Gensler as SEC chairman.
Although the US government is still making decisions about approving a Bitcoin ETF, some countries around the world have already approved or approved trading Bitcoin ETFs using the Bitcoin ETF from 3iQ Y. CoinShares debuts on the Toronto Stock Exchange Last month. Other fund managers like Purpose investment Y. Evolve Funds Group They also previously launched Bitcoin ETFs. attracting nearly $ 1.3 billion and $ 100 million in assets under management from mid-April.
Before, The Brazilian Securities Commission approved two cryptocurrency ETFs in March. One of them consisted entirely of Bitcoin and the other of five cryptocurrencies.