The SEC Isn’t Sure About the Safety of Bitcoin Futures For the Mutual Funds’ Investors
The mutual funds exposed to Bitcoin futures are in the focus of the American SEC attention now. The Commission is going to watch how they will protect their investors from the risks connected to crypto derivatives. They also warned the investors to think twice before dealing with such assets.
Bitcoin derivatives are interesting for many investors because they don’t require contacting the cryptocurrency directly for investment. The SEC is going to observe how it will work with the mutual funds and this will determine their position towards the approval of Bitcoin ETFs all the crypto market is waiting for.
There will be three main aspects of interest for the SEC to estimate the safety of such investment. These will be: the ability to liquidate derivatives in Bitcoin, the analysis on whether the Bitcoin market supports the mutual funds’ investment, and the Bitcoins held by funds.