October was a month of positive developments for the expected ETF news on the Bitcoin side. positive from the USA ETF After the news and ETF approvals, there were serious increases in Bitcoin price. After the first ETF accepted by the USA, other companies also prepared their applications. Often confident that he will receive approval Valkyrie if SEC rejected by
Companies that want to join the Bitcoin ETF world ProShares Although he started to make various applications by following the footsteps of his company, not all companies were so lucky. Could the SEC, which rejected the applications of the two firms, intimidated the crypto money world?
Earlier this week, two ETF filings were filed with the SEC. These included a different build from the currently approved build. Valkyrie and direction It had applied for a “leveraged Bitcoin Futures ETF.” Both applications were reportedly rejected by the regulatory agency (SEC).
Senior ETF analyst at Bloomberg Eric Balchunas Made by Twitter. Stating that the Valkyrie ETF was vetoed by the SEC, the analyst said, Dow JonesHe did not forget to refer to the warning of . Analyst, direction He added that the reverse ETF will suffer the same fate.
Looks like the SEC not having it w the levered (and likely inverse) Bitcoin futures ETFs. Can’t hurt to try tho. Had they gone through likely billion dollar trading vehicles in a few yrs. via Dow Jones pic.twitter.com/MspMRf3hL9
— Eric Balchunas (@EricBalchunas) October 27, 2021
The exchange traded fund named “Bitcoin Strategy Bear” offered by Direxion completed the required application on October 26. This eTF was a structure that invested in futures contracts that opened a “short” position in the price of Bitcoin. Valkyrie’s fund, on the other hand, invested in Bitcoin futures contracts with a leverage that could open 1.25 times trades. Both applications for funding were made in successive time periods.
While Valkyrie was investing in “futures” with the first eTF it was approved, its second ETF, which was rejected, offered swaps and options as well as futures.
Bloomberg analyst that the SEC is currently trading on the Chicago Mercantile Exchange (CME) expressed concern about funds holding anything but direct Futures contracts purchased.
Balchunas also confirmed the information by tweeting:
“It would be interesting if they let the reverse (short opener) pass. It was limited to futures contracts only. Valkyrie’s, on the other hand, strayed a little from that language.”
ETF Store Head Nate GeraciAccording to AXS Investments, on October 27, two more ETFs were applied for. One is for a regular Bitcoin Strategy ETF, while the other consists of a -1x reverse or short-circuit fund.
Eric Balchunas, the world’s largest digital asset management company grayscaleHe also stated that ‘s spot Bitcoin eTF application could be approved in about nine months. If the company’s current Grayscale Bitcoin Trust is accepted to be converted into an ETF; The fund will be able to invest directly in Bitcoin, not futures contracts.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.