SEC warns investors of the risks with Bitcoin futures

SEC warns investors of the risks with Bitcoin futures


The U.S. Securities and Exchange Commision (SEC) has warned investors about the risks of Bitcoin futures trading — citing market volatility, a lack of regulation and fraud to name a few issues.

In a June 10 Investor Alerts bulletin, the SEC outlines key points that investors should “carefully consider” before investing in a fund that buys or sells Bitcoin futures.

“Investors should understand that Bitcoin, including gaining exposure through the Bitcoin futures market, is a highly speculative investment,” the bulletin read.

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This latest Bitcoin-related risk warning from the SEC 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 latest warning notes 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:

“Investors should consider the volatility of Bitcoin

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