Demand for exchange-traded funds that would provide exposure to cryptocurrencies like bitcoin is strong, but regulators will likely wait until the underlying market matures more before approving such products, a panel of securities industry experts said on Friday.

IG Group, the leading spread betting provider and contract for difference (CFDs), is actively marketing bitcoin, bitcoin cash, and ether CFD trading to the mainstream. While customers speculate without owning actual cryptocurrencies, IG purchases and sells them to hedge its clients’ positions.

Amid the skyrocketed pace of bitcoin price surge, cryptocurrency industry is under the meticulous scanner of the US SEC. The U.S. Securities and Exchange Commission rejected the first U.S. ETF tracking bitcoin in March after a three-year review process, but a month later the regulator said it would revisit the ruling. The SEC also said this week it has a number of active investigations into firms that have claimed to be in the digital currency business. Despite such hurdles, interest in creating cryptocurrency-based ETFs is strong.

We undoubtedly preach that CFDs have been leveraged derivatives instruments which enable you with a small percentage of deposit for the full value of the trade in order to open a position. This is known as ‘trading on margin’. While trading on margin allows you to magnify your returns, your losses will also be magnified as they are based on the full value of the CFD position, meaning you could lose more than any capital deposited, correspondingly, the payoffs (yields) would also be exponential than underlying asset (digital currencies here in this case).

Nevertheless, the cryptocurrency avenue is still in growing phase of the industry, the better clarity on the underlying asset itself is the perplexing substance, they also present risks to investors given their limited adoption, a number of massive cybersecurity breaches affecting cryptocurrency owners and exchanges, and the lack of consistent treatment of the assets by governments.

For instance, China on Monday banned initial coin offerings (ICOs), where digital currencies are sold publicly and then often traded on secondary exchanges, and the price of bitcoin plunged more than 10 percent as a result. Majority of such derivatives instruments are OTC based (Over-The-Counter) but not the exchange based. There wouldn’t be any concept of a clearing house or exchange or something else, results in increased credit or default risk associated with each OTC contract. Not all OTC markets are risky, it also depends on the volume of contracts traded on the specific OTC market.