- BTC tumble continues after US and Chinese regulatory steps
- Trading got briefly halted on the Chicago Mercantile Exchange
- Bank of Canada has highlighted the risks posed by cryptocurrency assets
As cataclysmic events with frightening regularity hit the crypto trade, Two Canadian BTC RTF has issued a warning after this week’s Crypto mayhem. The warning comes amid the increasing popularity of crypto coins among crypto traders, and it also once again highlighted the risks faced by digital vehicles.
The latest tanking in BTC values comes in the wake of the US tightening regulations on several Bitcoin ETF applications. BTC crashed, and at one point, its values fell by one-third. The tumble was so intense that trading was briefly halted on the Chicago Mercantile Exchange to ease panicky trading in the market for futures. It had a significant impact on two funds run by Horizons ETFs Canada that track bitcoin futures. Horizons funds sent an SOS to their market makers who did trading on the ETF, and they declared their inability to honor the day’s buy and sell orders if the prices stood at their lowest limit at the close.
Steve Hawkins Horizons Chief Executive
Yahoo Finance quoted chief executive of Horizons ETFs Canada, Steve Hawkins, who said they were in a high state of alert and making plans for the future of ETFs.
The incident once again brought to fore the fact that crypto-linked assets are highly volatile even if they trade on regulated exchanges. Hawkins called the latest crash an eye-opener and confirmed that crypto assets are highly volatile. Notwithstanding the volatility of the past week, Hawking added that the interest in trading in ETFs has not diminished. However, ETFs do not wish away the risks involved, and investors must know that Bitcoin is a very high risk.
Bank Of Canada dubs Cryptocurrency as a risk to the country’s financial system.
Bank of Canada has highlighted the risks posed by cryptocurrency assets in the country’s financial system after a major selloff. Governor Tiff Macklem said that Cryptocurrency in the future could become a method of payment. The Bank added something which it had said in its annual review of financial troubles in 2019.
After approval from Canadian securities regulators, Horizon also launched 2 ETFs and has been trading on the CME since April. The two funds allow investors to speculate if the BTC process will rise or fall through regular investment accounts. The two funds priced in Canadian Dollars.
US regulators scrutinized 11 applications to launch crypto ETFs also in another development, giving unfettered access to regular retail investors. A statement released by the Securities and Exchange Commission said that BTC futures markets are highly volatile and speculative investments.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.