SEC The U.S. Securities and Exchange Commission has warned of mutual funds transacting Bitcoin futures contracts and citizens investing in these funds. The SEC issued a warning on Tuesday directly addressing Bitcoin. The focus was on speculative and manipulative transactions that investors may encounter in the Bitcoin market.
Risk warning for mutual funds
SEC officials stressed that “their highest priority is protecting investors.” Gary Gensler, the new chief of the regulator, said in a statement last week that investors in cryptocurrency exchanges are not providing enough protection.
The regulator will be examining funds that have invested in Bitcoin futures in line with this task. The SEC has called on people considering investing in these funds to:
“Investors must understand that Bitcoin is a highly speculative investment. They should consider Bitcoin’s volatility, lack of regulation and the potential for fraud and manipulation in the market. People should consider the risk level of the fund and how much risk they are prepared to take before investing in this, just like any other fund. ”
Funds investing in Bitcoin will be monitored
The SEC, which will examine whether funds investing in Bitcoin futures move within the legal limits, will also weigh the general situation of the Bitcoin futures market.
In this context; The liquidity and depth of the Bitcoin futures market will be analyzed, the effects of manipulation risk in the underlying market on the futures market will be evaluated, and the suitability of the futures market for exchange-traded funds (ETF) will be measured.