Employees of the Investment Management Department of the US Securities and Exchange Commission (SEC) have prepared and published a warning for investors regarding working with funds that have access to Bitcoin.
“We strongly urge any investor interested in investing in funds with access to the bitcoin futures market to carefully study the risks indicated by the fund, its own openness to risks and the possibility, as with any other investment, of losing invested funds,” the SEC writes, adding, that bitcoin is a “highly speculative investment.” “As such, investors should take into account the volatility of the bitcoin and bitcoin futures markets, as well as weak regulation and opportunities for fraud or manipulation in the underlying bitcoin market.”
The SEC also notes that funds working with bitcoin believe it is possible to do this without breaking the law, but the regulator will “carefully monitor and evaluate” their behavior in the interests of protecting investors. Among other things, the SEC intends to examine the ability of the bitcoin futures market to support ETFs, “which, unlike mutual funds, cannot prevent additional investor assets from entering the ETF if the ETF becomes too large or dominates the market, or if market liquidity begins to decline “.
Organizers of closed-end funds that do not allow the withdrawal of assets on a daily basis are encouraged by the SEC to contact her for advice before applying for registration. At the same time, the notice notes that it has no legal force and serves as a reflection of the opinion of the department’s employees.
Earlier, the new SEC chairman Gary Gensler approached Congress with a proposal to establish a legal framework for the regulation of cryptocurrencies.
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