SEC reportedly rejects Valkyrie’s leveraged Bitcoin ETF

Reports emanating from the U.S. Securities and Exchange Commission SEC, is that the agency has rejected about two Bitcoin exchange-traded fund ETFs recently applied for, by Valkyrie. This only goes to show that the regulator might not be ready to approve more exotic futures products just yet.

Just a day or thereabout, after Valkyrie’s filing for a leveraged Bitcoin futures ETF, and Direxion’s application for an inverse fund for bears reached the SEC, the regulator is looking to have thrown both filings under the bus.

Eric Balchunas, Bloomberg’s top ETF analyst mentioned a Dow Jones alert on October 28, signaling that the SEC has discontinued any ongoing paperwork with the Valkyrie leveraged fund. He added that this move would most likely also affect the inverse fund application.

Direxion had submitted an application for Bitcoin Strategy Bear ETF on Tuesday October 26. The bear ETF would enable speculators to buy futures that short BTC’s price. That same day, Valkyrie also filed for a leveraged BTC futures ETF that would have offered 1.25x exposure to the asset.

SEC uninterested in anything other than CME futures

From the look of things, it seems that the SEC may only be interested in direct futures products at the moment. That is, funds that buy contracts from the Chicago Mercantile Exchange (CME).

Apparently, the regulator is showing no interests whatsoever in approving any products that invest in the asset itself or anything other than CME futures contracts at this stage. As Balchunas says, it would be interesting to see the inverse one (Direxion’s) go through. That’s because it is still limited to futures, unlike Valkyrie’s, which is almost like a total deviation from the language SEC is speaking at the moment.

Meanwhile, new reports are now emerging from the ETF Store President, Nate Geraci. He says two more ETF filings from AXS investments came in on October 27. The SEC filings are for a regular Bitcoin Strategy ETF, just like the ProShares’ and Valkyries’ we already reported approved here at TheCoinrise.

Meanwhile in other news, VanEck is on the verge of launching its Bitcoin Strategy ETF which will be trading under the ticker XBTF. Balchunas who tweeted on Wednesday, said that there was a “good chance” it could start trading on Thursday, but no later than Friday, Oct. 29.