Cryptocurrencies
SEC Warns of Bitcoin Futures Risks in Mutual Fund Investments
- Agency to consider whether derivatives market could handle ETF
- Largest cryptocurrency ‘highly speculative’ asset, SEC says
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The U.S. Securities and Exchange Commission has a blunt message for investors in mutual funds that have holdings in Bitcoin futures: Beware of the risks.
While the derivatives have become increasingly popular, they’re still based on an asset that’s “highly speculative” and volatile, and which trades in a lightly regulated market, the SEC’s division of investment management said Tuesday in a statement. Investors should weigh their appetite for risk and examine the fund’s disclosures, the agency said.