With the unrivaled wave of institutional investors diving into the BTC market and several institutions adopting it, regulatory backing could be the next move. Although, as raised before, the current administration of the SEC could further keep its stance on Bitcoin as a legitimate investment. A statement released for warning to investors from the IM (Investment Management) Division Staff asserted that BTC and its futures market have a very high level of risk.
They tagged BTC as a very speculative and unregulated market with uncontrolled volatility that carries the potential of manipulation and fraud. This statement is a familiar one to everyone closer to the crypto ecosystem for years. But contrary to the expectations of the crypto community members, they gave a negative impression and perception of BTC and other cryptocurrencies.
The staff of the IM and the Risk and Economic Analysis Division, and the Examinations Claim Division assert that the organization is committed to monitoring the investments of mutual funds in the BTC Futures market. In a bid to achieve this, they aim to analyze and track the fairness and efficiency of the market.
The IM included the following in their statement: “Staff advises any mutual fund hoping to have an investment in the BTC futures to meet with the IM staff about the proposed investment of the fund, the expected Act compliance and rules of the Investment Company, and the way the fund will provide for the protection of their investors before filing a registration statement.”
How This Would Profit the Grayscale BTC Trust
The statement of the Staff of the Investment Management was reviewed by different experts, and they came to diverse conclusions. In the conclusions, some of them believe that closer monitoring and scrutiny on Bitcoin & its derivative markets could bring a positive long-term yield for the approval of the regulation. Others claimed that the message of the Securities and Exchange Commission is quite straightforward.
Eric Balchunas, Bloomberg Intelligence’s Senior Analyst in the ETF, mentioned that the Securities and Exchange Commission is informing the investors to stay with GBTC (Grayscale Bitcoin Trust) as a trusted institutional investments services among the few in the United States that provide exposure for BTC.
Currently, BTC is trading at $54,615 with about 3.7% on the daily chart and a 1.9% gain on the weekly chart.