Bitcoin (BTC): is the SEC taking us for a ride?
How many years will it take? 5? 10? 20? When will America’s Securities Exchange Commission (SEC) and other institutions like the FED stop spreading a negative discourse about Bitcoin (BTC)? This week, it is the Bitcoin futures markets time to take the heat.
Bitcoin contracts rumble ETFs
The Division of Investment Management (of the SEC) has issued a statement to investors regarding the BTC futures markets.
It expressed, “strongly encourages any investor interested in investing in a mutual fund with exposure to the Bitcoin futures market to carefully consider the risk disclosure of the fund, the investor’s own risk tolerance, and the possibility, as with all investing, of investor loss”.
The statement clarified that BTC futures contracts are highly speculative. These allow investors to gain exposure to Bitcoin without having to own it.
They also allow speculation on the future price of Bitcoin. In the SEC’s statement, Bitcoin futures are described as highly speculative.
The SEC has also issued warnings regarding BTC volatility and scams that are around it.
The organisation is making an official speech that is far from positive for BTC, especially since it has Bitcoin ETF demands it must vote on, on its desk.
The SEC received at least eight Bitcoin ETF applications in April 2021 – including VanEck’s with a decision planned for June this year. However, the SEC has also received applications from Galaxy Digital (Mike Novogratz), SkyBridge Capital (Anthony Scaramucci), and New York – Digital Investment Group.
Those who have requested are all waiting for a green light from the SEC. The pressure is on as Canada approved its first Bitcoin ETF earlier this year.
Finishing on a positive note
The SEC has already spoken publicly on Bitcoin futures shortly after the launch of BTC futures in 2017.
After publishing the Cryptocurrency Holdings Letter which recognised the Bitcoin futures market as an emerging market at the time.
While the SEC was critical in its recent statement, it still recognises the progress made since 2017.
Bitcoin will ruin you: but you will get used to this type of discourse that is often completely disconnected from reality. Bitcoin was trading under £1 a decade ago. At the time of writing, it is trading at around £27,500. Nonetheless, apparently not everyone has learnt to count yet.
Just your average global millennial embracing, and interested in, the future of money and finance. Excited by blockchain tech as well as fintech but have a special passion for DeFi and Yield Farming, what will this technological disruption bring next?