SEC Does Not Approve Levered Bitcoin ETF: Report

October 28, 2021

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The U.S. Securities and Exchange Commission (SEC) will not approve the list of utilized bitcoin exchange-traded funds (ETFs).

The SEC has instructed at least one prospective ETF provider not to proceed with its plans for leverage, the Wall Street Journal. reported on Thursday, citing a person familiar with the matter.
The U.S. market regulator wants to limit bitcoin-related investment vehicles to those that provide non-level exposure – in other words, it doesn’t consist of borrowed funds.
The report comes two days after Valkyrie Investments filed to offer a 1.25x-boosted bitcoin futures ETF.
After dozens of applications from different providers, the SEC finally approved the list of bitcoin future ETFs earlier this month. The ProShares fund began trading on the New York Stock Exchange on October 19 contributing in no way to the price increase of bitcoin leading to the cryptocurrency reaching a new all-time high of more than $ 66,000.

Read more: Direxion Files for Short Bitcoin Futures ETF