US Securities and Change Fee Reportedly Rejects Leveraged Bitcoin ETF

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Based on some current reviews, the US Securities and Change Fee (SEC) has rejected at the very least one of many two current Bitcoin exchange-traded fund (ETF) functions due to the dangerous nature of the leveraged monetary merchandise.

The report revealed by the Wall Road Journal talked about that the regulator is planning to permit solely unleveraged merchandise associated to Bitcoin, at current. The newest announcement from the SEC got here practically two days after Valkyrie filed for a leveraged Bitcoin futures ETF and Direxion utilized for an inverse fund for bears.

In the present day, Eric Balchunas, Bloomberg’s senior ETF analyst, highlighted the current rejection reviews and mentioned that it could be fascinating to see if the US Securities and Change Fee let the inverse fund undergo.

“Appears to be like just like the SEC [is] not having it with the leveraged (and sure inverse) Bitcoin futures ETFs. Can’t harm to attempt although. Had they gone by means of, seemingly billion-dollar buying and selling automobiles in a number of years. Could be fascinating in the event that they let the Inverse one undergo. That one was restricted to futures. Valkyrie’s was a little bit of a departure from that language,” Balchunas Tweeted.

Bitcoin ETF Optimism

Bitcoin and a lot of the different cryptocurrency belongings touched all-time highs after the most recent bullish crypto momentum pushed by the SEC’s approval of a Bitcoin ETF within the US. Nevertheless, the most recent reviews counsel that the SEC is in opposition to leveraged crypto buying and selling merchandise.

“The Securities and Change Fee requested at the very least one asset supervisor to not proceed with plans for a leveraged bitcoin exchange-traded fund, in accordance with an individual conversant in the matter. The SEC indicated it desires to restrict new bitcoin-related merchandise to those who present unleveraged publicity to bitcoin futures contracts, such because the ETF, which was launched final week, the particular person mentioned,” the Wall Road Journal highlighted within the report.

The SEC has saved a troublesome stance on BTC and different digital currencies in the previous few months. In an interview with CNBC, the SEC’s Chairman, Gary Gensler known as Bitcoin a speculative asset.

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