The Securities and Exchange Commission of US expressed serious doubts about the liquidity and price volatility of the cryptocurrency and related products. The department believes that the activities of exchange investment bitcoin-funds at the moment will not meet the requirements of the regulator. This is reported by TechCrunch.
Until the questions identified above can be addressed satisfactorily, we do not believe that it is appropriate for fund sponsors to initiate registration of funds that intend to invest substantially in cryptocurrency and related products, and we have asked sponsors that have registration statements filed for such products to withdraw them.
Director of the division of investment management, SEC
Blass also stressed that the Commission is concerned about the wide possibilities for manipulating the cryptocurrency market and the frequent application of the arbitrage trading strategy.
In addition, the SEC doubts that many financial institutions are eager to act as trustees and guarantee the security and security of the crypto-currency assets of such funds.