Market

SEC reportedly beats Valkyrie’s leveraged bitcoin ETF

Reports are surfacing that the U.S. Securities and Exchange Commission recently rejected one or possibly two applications for Bitcoin exchange-traded funds, suggesting that the regulator is not quite ready for the more exotic future products.

Just a day or so after Valkyrie filed for a leveraged Bitcoin futures ETF and Direxion filed for a bear-inverse fund, the SEC appears to have vetoed both.

28, Bloomberg senior ETF analyst Eric Balchunas referred to a Dow Jones warning that the Valkyrie leveraged fund has been removed by the SEC. He added that the move will likely apply to the inverse fund application as well.

https://twitter.com/EricBalchunas/status/1453473136712822784?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
On February 26, the ETF issuer Direxion presented a Strategy Bear Bitcoin ETF that enables speculators to short sell BTC futures. On the same day, Valkyrie filed an application for a leveraged BTC futures ETF that offers 1.25 times the risk of the asset.

The Direxion product invests entirely in futures, but the Valkyrie product holds futures, swaps, options and forwards. Another warning from Dow Jones reports that the SEC appears to only be interested in direct futures products at the moment, funds that buy contracts from the Chicago Mercantile Exchange (CME).

The regulator does not appear to want to approve products that invest in the asset itself or anything other than CME futures at this time. Balchunas confirms:

“It would be interesting (and possible) if they let inverse pass. That is one of the limits for the future. Valkyrie is a bit far from this language. “

Related: Cryptocurrency Breaks Wall Street’s ETF Barrier: A Tipping Point or a Stop?

ETF Store President, Nate Geraci, report that on October 27th two more ETFs were registered by AXS Investments. The SEC filing for a regular Bitcoin strategy ETF is similar to two approved funds and another short or reverse fund.

Another Dow Jones report says Grayscale is confident that the SEC will be ready to approve a spot Bitcoin ETF by July 2022.

In 19, Grayscale filed with the SEC to convert its popular Bitcoin Trust (GBTC) into a spot fund backed by the asset itself rather than a futures contract.

Geraci, commented on the current lack of regulation for the spot crypto market: “So the crypto market / exchange will be regulated by then? Looks ambitious. ”

In related news, VanEck is making final preparations for the launch of its Bitcoin strategy ETF, trading under the ticker XBTF. Wednesdays, balchunas speak There is a “good chance” that trading could begin on Friday October 29th, but possibly Thursday as well.

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

.

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Gate.io Shatters Records in Total Trading Volume in Q3 2024, with Its User Base Surpassing 17 Million

In the third quarter of 2024, despite a challenging market environment, Gate.io maintained strong growth…

20 mins ago

MEXC Champions the Future of Crypto Content Creation at CCCC

MEXC is proud to partner with the inaugural Crypto Content Creator Campus CCCC event, taking…

20 mins ago

Dtec Announces Global Partnership with DİZAYNVIP to Elevate AI-Driven Mobility Design  

Dtec and DİZAYNVIP partner to merge AI technology with luxury vehicle design, revolutionizing smart mobility…

1 hour ago

Bitcoin Spot ETF Outflows Reach Second Highest in History

Bitcoin Spot ETF Outflows hit $541M on November 4, the second-highest single-day outflow in history.…

5 hours ago

PropiChain’s Token Presale Turns Heads as the First DeFi Platform to Merge NFTs with AI 

The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…

8 hours ago

UK Pension Fund Cartwright Encourages 3% Allocation to Bitcoin Investment

UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…

10 hours ago

This website uses cookies.