The warning comes just weeks after Gary Gensler, who taught classes on digital assets at the Massachusetts Institute of Technology, took over as SEC chairman.
WASHINGTON: The United States Securities and Exchange Commission (SEC) has a blunt message for investors in mutual funds that have holdings in bitcoin futures: Beware of the risks.
While the derivatives have become increasingly popular, they’re still based on an asset that’s “highly speculative” and volatile, and which trades in a lightly regulated market, the SEC’s division of investment management said in a statement. Investors should weigh their appetite for risk and examine the fund’s disclosures, the agency said.
Already a subscriber? Log in.
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
