Securities and Exchange Commission warned investors about the risks of Bitcoin futures trading — citing market volatility, a lack of regulation and fraud.
Most of the mutual fund industry, mainly the multi-billion dollar asset managers, cannot buy physical Bitcoin.
However, it is possible to circumvent these limitations using exchange-traded funds , and tradeable investment trusts.
While the fund manager has complete control over the investment decisions, they must follow each specific vehicle regulation and observe the risk controls imposed by the fund’s administrator.
Those opting for CME Bitcoin futures, such as Tudor Investment, have to constantly roll over the position ahead of monthly expiries.
The relationship with the remaining asset managers is tight because banks are relevant investors and distributors of these independent mutual funds.