US Securities and Exchange Commission (SEC) warns investors about Bitcoin futures market. Details are in our news.
Bitcoin warning from SEC to investors
The US Securities and Exchange Commission (SEC) has issued a statement on the Bitcoin futures market.
The SEC’s Investment Management Division (IM) Investors looking to invest in a fund in the Bitcoin futures market should consider the fund’s risk outlook, their own risk tolerance, and the possibility of investor loss.
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Bitcoin futures, as it is known, allows you to invest in Bitcoin without buying and selling Bitcoin directly.. Like any other futures contract for a commodity or stock, Bitcoin futures give investors a chance to speculate on the future price of Bitcoin.
“Investors understand the volatility of Bitcoin and Bitcoin futures market. and should also consider that there may be fraud and manipulation in the Bitcoin market.”
SEC’s statement is not the first about Bitcoin futures. The SEC issued warnings about Bitcoin futures in 2017.. In his new statement, he cited the progress made since then, along with the risk warnings.
While investors are optimistic that the SEC will approve a Bitcoin ETF, there are currently no ETF applications under review.. It is thought that VanEck’s application may be finalized in June.
As of last month, eight Bitcoin ETF applications were filed with the American Securities and Exchange Commission (SEC).. Institutions applying for ETFs include VanEck, Galaxy Digital, Skybirridge Capital, and New York Digital Investment Group.