Fitch: Securities backed by Bitcoin. carry extremely high risk
Svmuu News: Fitch Ratings has warned that securities backed by Bitcoins (CLOs) face significant market value risks due to price volatility, structural complexity, and counterparty risk exposure. These instruments rely on Bitcoin as collateral, and their liquidation triggers could amplify losses.Past bankruptcies of cryptocurrency lenders and the extreme volatility of Bitcoin—such as the 49% plunge in March 2020—highlight the importance of adopting conservative funding strategies and sound risk management.
Source:Odaily · Source Link
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