Bitcoin exchange-traded funds (ETFs) are facing more obstacles in their battle to secure US listings after the Securities and Exchange Commission (SEC) reiterated its cautious approach to investing in Bitcoin futures.
In a bulletin cited in a CoinDesk report, the regulator urged investors to “weigh carefully the potential risks and benefits” of investing in funds with exposure to Bitcoin, warning that crypto investments are “highly speculative”.
The warning follows similar comments made by the SEC last month when it hinted that the volatility of crypto meant it may not be able to support ETFs.
A reiteration of the regulator’s cautionary approach is likely to dampen the mood among a plethora of firms that have filed applications for Bitcoin ETFs with the SEC.
However, pressure is likely to build on the watchdog to make a final decision on crypto futures products and ETFs as financial institutions increasingly expand their presence in crypto markets, with some such as Goldman Sachs Group Inc (NYSE:GS) recently set up a trading desk for cryptocurrency.
In early deals in London on Friday, Bitcoin was up 0.5% in the last 24 hours at US$36,999, giving it a market cap of US$693bn.