Bitcoin ETFs Dealt Setback as SEC Underscores Risk to Investors
- Regulator asks about risks of manipulation, valuing assets
- Letter suggests cryptocurrency funds are some way off
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The U.S. securities regulator raised a series of investor protection concerns about cryptocurrency mutual and exchange-traded funds, the strongest sign yet that the world’s biggest market isn’t likely to see the products any time soon.
In a letter to two leading industry groups on Thursday, the Securities and Exchange Commission asked a number of questions on topics including the risks of manipulation, whether funds could accurately value the volatile products, and how they’d meet demands to redeem virtual currency.