In the US, after the SEC accepted Bitcoin futures ETFs in the past few weeks, applications for Bitcoin ETFs began to be filed with the SEC.
While more ETFs are expected to be approved after the SEC’s approval of ETFs, the SEC has shown that they are working diligently on the ETF by rejecting two of the ETF applications queued for approval.
According to the Wall Street Journal, Valkyrie’s leveraged Bitcoin ETF and Direxion’s “short” open position ETF were rejected by the SEC.
By rejecting leveraged Bitcoin ETFs, the SEC has indicated that it wants to limit Bitcoin funds to non-leveraged funds such as ETFs for now.
Although Valkyrie Investestments’ first ETF was approved, the Bitcoin ETF with 1.25x leverage was rejected.
Eric Balchunas, one of the Bloomberg analysts, announced the news of the SEC’s rejection, saying that “the SEC is currently not looking forward to leveraged Bitcoin ETFs” in his post on Twitter.
After saying that it would be interesting for the SEC to approve leveraged ETFs, Balchunas pointed out that Grayscale’s spot Bitcoin ETF could also be approved within 9 months.
Grayscale expects SEC to approve spot bitcoin ETF in only 9 months (July 2022). I’d probably take the over but need more time / info bf giving odds/making call. Story via Dow Jones. pic.twitter.com/vbL49DIQeO
— Eric Balchunas (@EricBalchunas) October 27, 2021