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SEC is set to allow bitcoin futures ETFs to begin trading


A huge win for the cryptocurrency sector, the Securities and Exchange Commission has approved the trading of the first U.S. Bitcoin futures exchange-traded funds. CNBC reportedFreitag

According to sources familiar with the subject told CNBCThe SEC won’t block futures-based Bitcoin ETFs that Invesco and ProShares have proposed. Bitcoin’s price rose after the news was spread. surged above $60,000

Experts recommend that investors understand all the possible risks of a bitcoin futures ETF, before you part with any money. These are some things to think about.

The ETF price will not be tied to Bitcoin

You will incur additional charges

An investor should be aware of the fact that investing in Bitcoin directly via a futures ETF can be much more expensive than investing directly. Because there are many options, additional costsAn ETF track can be attached to futures contracts, which may impact what investors end up paying.

Johnson also states that an ETF requires many intermediaries in order to invest, such as hedge funds or ETF providers. A few in crypto believe that ETFs are a good idea. would benefit these middlemen moreETFs are often more attractive to retail investors than those that trade at a premium in bull markets.

Raoul Pal, a crypto investor who was formerly a hedge fund manager, said that “Hedge funds… capture these returns.” tweetedThis Friday “Wall street gets richer. Retail investors lose. Yet again.”

Johnson claims that the middlemen take away the spirit of crypto assets. After all, the purpose of decentralized peer-to–peer networks, Johnson says, is to get rid of the intermediaries in traditional financial markets.

Exposure to crypto-currencies is risky

Last but not least, investors need to be aware that there are still risks of losing their investment.

Experts still consider the risk of exposure to a bitcoin ETF that is futures-based. Experts view this asset class as volatile, speculative and recommend that you only lose what you are able to afford.

The SEC’s Office of Investor Education and Advocacy tweetedOn Thursday, I advised that you weigh both the risks and the benefits of investing in bitcoin futures funds.

All investments in funds carry the risk of losing money. The high volatility and fluctuation of bitcoin (which means prices can vary widely) may increase this risk for bitcoin futures positions, the SEC stated in a postIn June

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