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Hopes for US crypto ETFs recede after SEC warning

Regulator vows to ‘closely monitor’ the mutual funds investing in bitcoin futures

The Securities and Exchange Commission’s recent notice cautioning investors about the risks of bitcoin futures used in mutual funds could spell trouble for crypto ETFs awaiting the regulator’s green light, analysts say.

For now, the commission’s Division of Investment Management is only comfortable with having mutual funds hold bitcoin futures, according to a warning issued last week.

The division urged investors to make sure that they fully understand bitcoin and its futures market before they invest in funds that have exposure to the “highly speculative investment”.

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