Bitcoin was gaining massive popularity in 2020 when the global crisis began, and the king coin has been breaking one ATH after the other this year as well.
The SEC has been scrutinizing Bitcoin and crypto for a long time.
SEC says Bitcoin is highly speculative
The SEC has hinted that the BTC’s market’s volatility may mean it’s not yet ready to support an exchange-traded fund (ETF), though it’s monitoring the digital asset sector and is seeking input, CoinDesk reports.
The online publication also cited SEC and noted that Bitcoin is a “highly speculative” asset, the staff statement, published Tuesday by the Division of Investment Management, said.
The note also warned that investors in mutual funds who are trading BTC futures might be taking on more risk than they’re aware of.
“The warning comes as high profile funds from Morgan Stanley and BlackRock begin to diversify into bitcoin through adjacent products like cash-settled bitcoin futures and Grayscale’s Bitcoin Trust. Those bets represent major steps in the institutional adoption trend of the last 12 months,” CoinDesk reports.
It’s been revealed that the note has implications for BTC ETFs, which crypto proponents have been hoping to see for years.
“The staff among other things expect to … consider whether, in light of the experience of mutual funds investing in the Bitcoin futures market, the Bitcoin futures market could accommodate ETFs, which, unlike mutual funds, cannot prevent additional investor assets from coming into the ETF if the ETF becomes too large or dominant in the market, or if the liquidity in the market starts to wane,” the note said.
We suggest that you check out CoinDesk’s original notes in order to learn all the available details.
Regarding the price of BTC, at the moment of writing this article, BTC is trading in the green, and the coin is priced at 56,173.12.