SEC Warns Mutual Fund Investors of Bitcoin Futures Risks
The U.S. Securities and Exchange Commission (SEC) warned investors in mutual funds that invest in bitcoin (BTC, +1.02%) futures products to monitor risks around the digital asset and the funds investing in the sector.
Bitcoin is a “highly speculative” asset, the staff statement, published Tuesday, said. The note warned that investors may be taking on more risk than they’re aware of.
The note specifically pointed to the volatility of the bitcoin and bitcoin futures market.
This is a developing story and will be updated.
By Danny Nelson, CoinDesk