Spot-based crypto exchange traded products (ETPs) are not subject to forced liquidations as they do not utilize perpetual futures, distinguishing them from other leveraged crypto investments. While all crypto investments carry inherent risks, this specific risk is absent for spot ETPs. Additionally, effective regulation is crucial to prevent events like recent market deleveraging from impacting broader financial systems.
Spot-Based Crypto ETPs Avoid Forced Liquidations, Highlighting Regulatory Importance
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