Fitch: Bitcoin-backed securities carry extremely high risks

According to Odaily, Fitch Ratings has issued a warning that securities backed by bitcoin face high market value risks due to price volatility, structural complexity, and counterparty risk exposure. These instruments rely on bitcoin as collateral, and their liquidation trigger mechanisms may amplify losses. The past bankruptcies of crypto lending institutions and bitcoin’s extreme volatility (such as the 49% plunge in March 2020) highlight the importance of adopting conservative financing strategies and sound risk management.