SEC Will Not Approve Leveraged Bitcoin ETF: Report
The U.S. Securities and Trade Fee (SEC) is not going to approve the itemizing of leveraged bitcoin exchange-traded funds (ETF).
The SEC instructed not less than one potential ETF supplier to not proceed with their plans for a leveraged funds, the Wall Avenue Journal reported on Thursday, citing an individual conversant in 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 purposes from completely 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 Inventory Trade on Oct. 19 contributing in no small approach to bitcoin’s value surge resulting in the cryptocurrency reaching a brand new all time excessive of over $66,000.
Learn extra: Direxion Information for Brief Bitcoin Futures ETF