The United States Securities and Exchange Commission, or SEC, has issued an investor warning pointing out risks of mutual funds that have exposure to Bitcoin (BTC) futures.
In an official statement on Tuesday, the SEC strongly encouraged investors to thoroughly consider risks disclosure of a mutual fund on the Bitcoin futures market, stressing that Bitcoin is a “highly speculative investment.” The authority emphasized that investors should take into account the volatility of both Bitcoin and the Bitcoin futures market, as well as the lack of regulation and potential fraud or manipulation in the underlying Bitcoin market.