The concerns refer in particular to the establishment of Bitcoin ETFs, some of which even use leverage to amplify the price movements. The extreme volatility in recent months highlights the large degree of speculation involved. Likewise, the lack of liquidity is concerning.
If many investors want to withdraw their money from the ETFs on a particular day, the funds might struggle to meet the redemptions because they would struggle to sell off their atypical assets. And how would such funds deal with cases of market manipulation, as have happened in the past?11 Clarity on such aspects is vital.