{"id":271800,"date":"2021-06-11T07:50:59","date_gmt":"2021-06-11T04:50:59","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/sec-warns-investors-of-the-risks-with-bitcoin-futures\/"},"modified":"2021-06-11T07:50:59","modified_gmt":"2021-06-11T04:50:59","slug":"sec-warns-investors-of-the-risks-with-bitcoin-futures","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/sec-warns-investors-of-the-risks-with-bitcoin-futures\/","title":{"rendered":"# SEC warns investors of the risks with Bitcoin futures"},"content":{"rendered":"<p>&#8220;<strong># SEC warns investors of the risks with Bitcoin futures  <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvZjIyY2FiM2YtNTk4My00MGZjLTkzMjUtOTFjOGIwMGY4YWE2LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>The U.S. Securities and Exchange Commision (SEC) has warned investors about the risks of Bitcoin futures trading \u2014 citing market volatility, a lack of regulation and fraud to name a few issues. <\/p>\n<p>In a June 10 <em>Investor Alerts <\/em>bulletin, the SEC outlines key points that investors should \u201ccarefully consider\u201d before investing in a fund that buys or sells Bitcoin futures. <\/p>\n<p>\u201cInvestors should understand that Bitcoin, including gaining exposure through the Bitcoin futures market, is a highly speculative investment,\u201d the bulletin read. <\/p>\n<p>This latest Bitcoin-related risk warning from the SEC follows up on a note it sent out last month, warning investors &#8220;interested in investing in a mutual fund with exposure to the Bitcoin futures market&#8221; to think twice due to the risks. <\/p>\n<p>The latest warning notes that while investments in all types of funds involve risk, funds that \u201cbuy or sell Bitcoin futures may have unique characteristics and heightened risks compared\u201d to others:<\/p>\n<blockquote><p>\u201cInvestors should consider the volatility of Bitcoin and the Bitcoin futures market, as well as the lack of regulation and potential for fraud or manipulation in the underlying Bitcoin market.\u201d<\/p><\/blockquote>\n<p>The SEC also highlighted that Bitcoin\u2019s price does not necessarily correlate with the value of the fund that holds Bitcoin futures positions. According to the SEC, this is in part due to the funds potentially not having a direct exposure to the \u201cunderlying assets.\u201d<\/p>\n<p>\u201cFutures contract prices can vary by delivery months and differ from the underlying commodity\u2019s spot price,\u201d the bulletin read.<\/p>\n<p>The bulletin also emphasized warnings such as \u201cinvestors should focus on the level of risk they are taking compared to the level of risk they are comfortable taking,\u201d which sparked a humorous response on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>, with finance and risk researcher and author Nassim Taleb, stating \u201cI am very grateful that we have the SEC, thank God!\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I am very grateful that we have the SEC, thank God!<\/p>\n<p>\u2014 Nassim Nifraudolas Taleb (@nnfraudtaleb) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/nnfraudtaleb\/status\/1403065523433312258?ref_src=twsrc%5Etfw\">June 10, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><strong>Related: <\/strong><strong>JPMorgan points to weak Bitcoin futures as signal for bear market<\/strong><\/p>\n<p>The warning is the second time this week U.S. regulatory bodies have come out publicly against cryptocurrency derivatives. On June 8, Dan M. Berkovitz, the commissioner of the Commodity Futures Trading Commission (CFTC) said he believed that DeFi markets for derivatives are a \u201cbad idea\u201d and that he doesn\u2019t see \u201chow they are legal under the CEA.\u201d <\/p>\n<p>Caitlin Long, the founder and CEO of Avanti Financial, has been keeping an eye on narrative from public statements put out by U.S. governing bodies amid what she calls a \u201ccrypto regulatory crackdown\u201d. She <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CaitlinLong_\/status\/1403065328935051266\">pointed<\/a> out earlier today the SEC was likely even more alarmed about overseas platforms: <\/p>\n<blockquote><p>\u201cSEC is issuing this investor warning re onshore exchanges, which offer only about 2.5x leverage&#8211;just imagine how it views offshore exchanges offering &gt;100x leverage.\u201d <\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/sec-warns-investors-of-the-risks-with-bitcoin-futures\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# SEC warns investors of the risks with Bitcoin futures &#8221; The U.S. Securities and Exchange Commision (SEC) has warned investors about the risks of Bitcoin futures trading \u2014 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&#8230;<\/p>\n","protected":false},"author":1,"featured_media":271801,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvZjIyY2FiM2YtNTk4My00MGZjLTkzMjUtOTFjOGIwMGY4YWE2LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74972,74858,75846,74898,76695,75269,70934],"class_list":["post-271800","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin-futures","tag-bitcoin-regulation","tag-futures","tag-sec","tag-u-s","tag-us-government","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/271800","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=271800"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/271800\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/271801"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=271800"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=271800"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=271800"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}