SEC Will Not Approve Leveraged Bitcoin ETF: Report

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The U.S. Securities and Exchange Commission (SEC) won’t approve the itemizing of leveraged bitcoin exchange-traded funds (ETF).

  • The SEC instructed at the least one potential ETF supplier to not proceed with their plans for a leveraged funds, the Wall Street Journal reported on Thursday, citing an individual accustomed to the matter.
  • The U.S. markets regulator needs to restrict bitcoin-related funding automobiles to those who present un-leveraged publicity – in others phrases not comprised of borrowed funds.
  • The report emerges two days after Valkyrie Investments filed to supply 1.25x leveraged bitcoin futures ETF.
  • After dozens of functions from totally different suppliers, the SEC lastly authorized the itemizing of a bitcoin futures ETF earlier this month. ProShares’ fund began buying and selling on the New York Stock Exchange on Oct. 19 contributing in no small strategy to bitcoin’s value surge resulting in the cryptocurrency reaching a brand new all time excessive of over $66,000.

Read extra: Direxion Files for Short Bitcoin Futures ETF