SEC cautions on bitcoin futures as ‘highly speculative’

The U.S. Securities and Exchange Commission (SEC) предупредила investors in mutual funds that hold bitcoin futures about the risks associated with derivatives.

While such instruments are becoming increasingly popular, they remain based on an asset that is “extremely speculative”, volatile and traded on a lightly regulated market, according to the SEC’s Division of Investment Management.

The agency added that investors should review the information disclosed by the fund and determine an acceptable level of risk for themselves before investing.

“Investors’ protection and compliance with regulatory requirements for these funds is the staff’s top priority,” the SEC said.

The regulator will also study, based on the experience of investors in bitcoin futures funds, whether the market can support an ETF.

In ongoing monitoring, staff expect to:

• analyse the liquidity and depth of the cryptocurrency futures market;
• assess the ability of funds to liquidate positions in it as needed to meet daily redemption requirements, and the effectiveness of risk management;
• study asset valuations by the funds.

The statement also notes that it reflects the views of the staff of the Division of Investment Management and has no legal force.

In April, the U.S. Senate confirmed Gary Gensler to lead the SEC. Commissioner Hester Peirce believes that his leadership could be a very productive period for the crypto industry.

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