The United States Securities and Exchange Commission (SEC) will reportedly not allow a leveraged Bitcoin exchange-traded funds (ETF) to go through in the near future.
According to the Wall Street Journal, regulators have ordered at least one asset manager not to go forward with a planned investment product. According to sources familiar with the situation, the regulator has forbidden at least one asset manager from proceeding with its plans for an investment product.
According to sources, the SEC’s aim is to restrict Bitcoin-related investment products that provide un-leveraged exposure.
One of the sources stated that “The Securities and Exchange Commission asked at least one asset manager not to proceed with plans for a leveraged bitcoin exchange-traded fund, according to a person familiar with the matter. The SEC indicated it wants to limit new bitcoin-related products to those that provide unleveraged exposure to bitcoin futures contracts, such as the ETF, which was launched last week, the person said.”
This comes after, the firm behind 1.25x leveraged Bitcoin futures ETF Valkyrie Investments has filed with the SEC to offer such a product. The company is among those in the cryptocurrency market looking to provide new investment opportunities.
