In Brief:
- As per reports, SEC suggests limiting new bitcoin related products to those providing unleveraged exposure to bitcoin futures contracts.
- The report comes two days after Valkyrie had filed for 1.25x leveraged bitcoin futures ETF.
As per a Wall Street Journal report, The US Securities and Exchange Commission (SEC) has asked at least one of the asset managers to scrap plans for a leveraged bitcoin ETF. The report quotes a person familiar with this matter.
As the report comes two days after Valkyrie had filed for 1.25x leveraged bitcoin futures ETF. Thus, it could be deduced that the SEC has seemingly turned down Valkyrie’s plan to launch its leveraged Bitcoin Futures ETF.
It is reportedly implied that the SEC has hinted that “it wants to limit new bitcoin-related products to those that provide unleveraged exposure to bitcoin futures contracts.” Thus, the SEC seems to not include those composed of borrowed funds.
Interestingly, it was just in the month of October, that the SEC had finally approved the listing of ProShares Bitcoin Strategy ETF which is the first U.S. bitcoin futures-based exchange-traded fund.
Following this, ProShares Fund started trading on New York State Exchange seeing a massive $1B trading volume on its first day on 19 October. This in turn was seen as nothing less than a turning point for cryptocurrencies and gave a great impetus to bitcoin prices.
But with this new turn of events, things could be different!
