Bitcoin and Ether ETFs Face Risk Warning from SEC, Called Speculative Investments
The U.S. Securities and Exchange Commission (SEC) has issued a warning about the risks of bitcoin and ether exchange-traded products (ETPs). Including ETFs, emphasizing their speculative nature.
The SEC highlighted concerns such as price volatility, fraud, and a lack of regulatory oversight in unregulated markets. It noted that bitcoin and ether ETPs, both futures and spot-based, carry heightened risks and are not registered under the Investment Company Act, meaning they lack certain investor protections.
The SEC urged investors to thoroughly review disclosure documents and assess how these investments fit into their overall financial strategy.
Clever Robot News Desk 11st September 2024
