The US Securities and Exchange Commission has once again warned investors about the risks of investing in cryptocurrencies and the Bitcoin futures market.
Such investments are described as highly speculative – the cryptocurrency market is overly volatile, there is a lack of regulation, and there are a lot of cases of fraud. Therefore, investors need to “carefully weigh” all the pros and cons.
The warning notes that there are risks when investing in any funds, but “trusts that trade bitcoin futures have unique characteristics and an increased level of risk.”
“Investors need to consider the volatility of bitcoin and bitcoin futures, as well as the lack of regulation and the possibility of fraud or manipulation of the BTC price,” the regulator writes.
The SEC reminded in its warning that the value of shares of funds investing in bitcoin may not reflect the value of the asset itself. Likewise, the price of Bitcoin futures depends on many factors.
This is far from the first SEC warning about the risks of investing in cryptocurrencies. As recently as a month ago, the regulator issued a similar document in which it warned against investing in futures and other derivatives on bitcoin.
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