The SEC allegedly won’t approve leveraged Bitcoin ETFs.
According to the Wall Street Journal, the US Securities and Exchange Commission (SEC) has instructed at least one ETF company not to pursue leveraged Bitcoin ETF efforts. The news came two days after Valkyrie Investments filed for a 1.25x leveraged Bitcoin futures ETF.
As previously reported, after many years of effort, the SEC has approved for the first time a Bitcoin-linked ETF. ProShares’ Bitcoin futures ETF met with a huge demand after it started trading. Subsequently, Valkyrie’s Bitcoin futures ETF began trading, becoming the second Bitcoin ETF in the United States. It seems that the SEC wants to limit Bitcoin-related investment vehicles to unleveraged and low-risk products.