The U.S. Securities and Exchange Commission (SEC) will not approve the listing of leveraged bitcoin exchange-traded funds (ETF).
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The SEC instructed at least one prospective ETF provider not to proceed with their plans for a leveraged funds, the Wall Street Journal reported on Thursday, citing a person familiar with the matter.
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The U.S. markets regulator wishes to limit bitcoin-related investment vehicles to those that provide un-leveraged exposure – in others words not comprised of borrowed funds.
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The report emerges two days after Valkyrie Investments filed to offer 1.25x leveraged bitcoin futures ETF.
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After dozens of applications from different providers, the SEC finally approved the listing of a bitcoin futures ETF earlier this month. ProShares’ fund started trading on the New York Stock Exchange on Oct. 19 contributing in no small way to bitcoin’s price surge leading to the cryptocurrency reaching a new all time high of over $66,000.
