Credit: Original article published by Coingape.

Just as Bitcoin (BTC) price continues to make new highs every passing day, investment firms across the world are working on introducing Bitcoin exchange-traded-funds (ETFs) to the market. Pulling the regulatory strings, Swedish financial watchdog – Financial Supervisory Authority (FSA) – has warned investment firms to think twice before selling their crypto-based ETF products.

In the FOMO triggered by rising prices, investors are entering the crypto space at an unprecedented rate. As per the Bloomberg report, the FSA in a statement wrote that “it will take action against companies that sell the risky, complex instruments to retail investors who don’t understand what they’re getting into”.

The Swedish regulator has called for additional regulation in this space. It added that the ETF-like investment instruments are “unsuitable for most, if not all, consumers”. The FSA added that since retail buyers of such volatile investment products follow the market, “the risk of large losses increases”.

The craze around Bitcoin ETFs has recently shot up amid the rapidly surging BTC price. Also, Sweden hosts the largest Bitcoin ETF product – $1.7 billion Bitcoin Tracker EUR – listed on the Stockholm Stock Exchange.

Thus, with the latest frenzy around, the FSA has started reviewing crypto-based investment tracking products. It noted that they have to further work in this direction as the current requirements don’t do enough to alleviate the risks faced by the buyers currently.

Bitcoin ETF Popularity Growing in North America

Demand for Bitcoin ETF has recently shot up massively in the North American market, especially Canada. the Bitcoin ETF funds launched by Purpose Investment saw a massive response clocking nearly $400 trading volume in just two days of launch.

Following the launch of Purpose Bitcoin ETF, Canada also got its second Bitcoin ETF from Evolve in the same week. However, Purpose has managed to make the most of the first-mover-advantage.

The race for launching the Bitcoin ETF in the U.S. market is picking up once again. NYDIG has been the recent applicant of the Bitcoin ETF with the U.S. SEC, shares of which will be traded on the New York Stock Exchange (NYSE). In the past, the SEC has turned down over a dozen of proposals for the Bitcoin ETF over strong concerns of price manipulation and liquidity.

The post Swedish Regulator FSA Warns Companies Selling Bitcoin ETFs to Average Customers appeared first on Coingape.

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#Bitcoin #Crypto #Cryptocurrency

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