According to the U.S. Security & Exchanges Commission (SEC) Report concerning Bitcoin Futures, investors are cautioned to consider the risk.
The Division of Investment Management staff strongly encourages any investor interested in investing in a mutual fund with exposure to the Bitcoin futures market, to carefully consider the risk disclosure of the fund, the investor’s own risk tolerance, and the possibility, as with all investing, of investor loss.
“As such, investors should consider the volatility of bitcoin and the bitcoin futures market, as well as the lack of regulation and potential for fraud or manipulation in the underlying bitcoin market,” the statement read.
The report comes as Chairman Gary Gensler dilutes anticipation of an Bitcoin ETF. Retrospectively, most cryptocurrency analysts were hoping that when Gensler was confirmation as the SEC Chairman, it would benefit digital assets ecosystem.
Then, last week Gensler said on CNBC’s “Squawk Box” that he sees the attraction to bitcoin for traders but regulation is needed to prevent fraud and other issues. He said many of the digital tokens were trading like assets and should fall under the purview of the SEC.
The SEC concluded the released statement by saying that “they neither approved nor disapproved” of the Bitcoin Futures ETF . This statement, like all SEC Staff statements, has no legal force or effect: it does not alter or amend applicable law, and it creates no new or additional obligations for any person.
At the time of writing, Bitcoin price is $49,166.37 USD with a 24-hour trading volume of $105,088,286,749 USD. Bitcoin is down 9.73% in the last 24 hours.
