Risk from Cryptocurrencies Increases

The US Securities and Exchange Commission (SEC) has approved the ProShares Bitcoin futures Exchange Traded Fund (ETF) application, the first cryptocurrency the US financial markets regulator has approved.

The SEC has been wary of approving ETFs that track Bitcoin’s spot market due to its fear of price manipulation within the crypto space. The regulator said it feels investors are safer when they invest in Bitcoin futures ETF over the regular Bitcoin ETFs.

This news has generated huge interest and driven the price of Bitcoin to new highs. It has also highlighted the risks involved.

This development makes Bitcoin seem a little more normal, part of mainstream finance. Priced in dollars, if you can buy and sell futures in a regulated US exchange, it starts to look like other listed, traded and liquid assets.