Fitch: Bitcoin-backed securities are extremely risky

Odaily Odaily reports that Fitch Ratings has warned that Bitcoin-backed securities carry a high degree of market value risk due to price volatility, structural complexity, and counterparty exposure. These instruments rely on Bitcoin as collateral, and their liquidation trigger mechanisms could amplify losses. Past bankruptcies of cryptocurrency lenders and extreme Bitcoin volatility (such as the 49% crash in March 2020) highlight the importance of adopting conservative financing strategies and sound risk management.