The U.S. Securities and Exchange Commission (SEC) has warned investors about the risks of Bitcoin futures trading. The financial regulator cited market volatility, a lack of regulation, and fraud to warn investors against the risk of the bitcoin futures market. U.S.
SEC noted that while investments in all types of funds involve risk, funds that “buy or sell Bitcoin futures may have unique characteristics and heightened risks compared” to others.
This latest Bitcoin-related risk warning from the financial regulator follows up on a note it sent out last month, warning investors “interested in investing in a mutual fund with exposure to the Bitcoin futures market” to think twice due to the risks.
The U.S. SEC noted, “Investors should consider the volatility of Bitcoin and the Bitcoin futures market, as well as the lack of regulation and potential for fraud or manipulation in the underlying Bitcoin market.”