Tuesday, November 30, 2021

US SEC has reportedly rejected leveraged bitcoin ETF.

The Takeaway:

The US SEC has rejected at least one of the two recent Bitcoin exchange-traded fund (ETF) applications because of the risky nature of the leveraged financial products.

ADVERTISEMENTKillerlaunch domains

According to some recent reports, the US Securities and Exchange Commission (SEC) has rejected at least one of the two recent Bitcoin exchange-traded fund (ETF) applications because of the risky nature of the leveraged financial products. Wall Street Journal mentioned in its report that the financial regulator is planning to allow only unleveraged products related to Bitcoin at present.

 

Valkyrie had also filed for a leveraged Bitcoin futures ETF.

The latest announcement from the SEC regarding leveraged bitcoin ETF came nearly two days after Valkyrie filed for a leveraged Bitcoin futures ETF and Direxion applied for an inverse fund for bears. Today, Eric Balchunas, Bloomberg’s senior ETF analyst, highlighted the recent rejection reports and said that it would be interesting to see if the US Securities and Exchange Commission let the inverse fund go through.

 “Looks like the SEC [is] not having it with the leveraged (and likely inverse) Bitcoin futures ETFs. It can’t hurt to try, though. Had they gone through likely billion-dollar trading vehicles in a few years. It would be interesting if they let the Inverse one go through. That one was limited to futures. Valkyrie’s was a bit of a departure from that language,” Balchunas Tweeted.

 

Bitcoin touched all-time highs after SEC’s approval of a Bitcoin ETF.

Bitcoin and other major cryptocurrencies touched all-time highs after the latest bullish crypto momentum driven by the SEC’s approval of a Bitcoin ETF in the US. However, the latest reports suggest that the SEC is against leveraged crypto trading products. “The SEC indicated it wants to limit new bitcoin-related products to those that provide unleveraged exposure to bitcoin futures contracts, such as the ETF, which was launched last week, the person said,” the Wall Street Journal highlighted in the report.

ADVERTISEMENTBtrz jokerbtc 728x90 en

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

Leave A Reply

Please enter your comment!
Please enter your name here