Search Share Prices
SEC raises concerns over Bitcoin investor funds
The US Securities and Exchange Commission cautioned investors over bitcoin-themed investments on Thursday, as the regulator warned the fund industry that it wanted answers to its vast concerns before making any moves to endorse multiple proposed products based on cryptocurrencies.
One of the SEC's top division chiefs detailed the agency's concerns surrounding the wild-trading investment in a letter sent to two trade groups representing fund managers that revealed an array of proposals for funds based on bitcoin and other related assets.
The SEC demanded answers to no less than 31 detailed questions about how mutual funds or exchange-traded funds based on cryptocurrencies would store, safeguard, and price that asset and asked whether or not investors understood the risks of bitcoin markets being manipulated.
"There are a number of significant investor protection issues that need to be examined before sponsors begin offering these funds to investors," the letter from Dalia Blass, the SEC's director of its investment management division read.
In March 2017, the SEC denied a request to list an ETF from famed crypto investors Cameron and Tyler Winklevoss.