Oops!Something went wrong.Please try again later.Helene BraunJune 10, 2021, 3:52 PM·1 min readOops!Something went wrong.Please try again later.
The U.S. Securities and Exchange Commission (SEC) reiterated the risks of investing in bitcoin futures-focused funds with a staff note on Thursday that underscores the uphill battle that U.S. bitcoin exchange-traded funds (ETFs) face.
In an emailed investor bulletin obtained by CoinDesk, staffers “urge investors considering a fund with exposure to the Bitcoin futures market to weigh carefully the potential risks and benefits of the investment,” the note said, warning investors that the cryptocurrency as an investment is “highly speculative.”
This is the second recent warning the SEC has sent out in regards to Bitcoin’s risk.
Last month, it sent out a note to investors highlighting that it may not be safe yet to support an exchange-traded fund under the Investment Advisers Act of 1940 because of Bitcoin’s volatility.
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