The SEC does not appear to have the appetite for more exotic Bitcoin futures products.
Reports are rising that the U.S. Securities and Exchange Commission has rejected one, or probably 2, recent Bitcoin exchange-traded fund applications signal that the regulator isn't quite prepared for additional exotic futures product simply yet.
Just each day close to once Valkyrie filed for a leveraged Bitcoin futures ETF and Direxion applied for an inverse fund for bears, the SEC seems to own vetoed them each.
On Oct. 28, Bloomberg’s senior ETF analyst Eric Balchunas mentioned a Dow Jones alert indicating the Valkyrie leveraged fund had been shelved by the SEC. He added that the move was possible conjointly to use to the inverse fund application.
On Oct. 26, ETF issuer Direxion filed for a Bitcoin Strategy Bear ETF that may enable speculators to shop for futures that short the worth of BTC. On an equivalent day, mythical being filed for a leveraged BTC futures ETF that may have offered 1.25x exposure to the quality.
The Direxion product invested with strictly in futures, however, the mythical being one would have control futures, swaps, options, and forwards. Another stock market index alert rumored the SEC solely appears curious about direct futures product at the instant, funds that get contracts from the Chicago Mercantile Exchange (CME).
The regulator doesn't appear keen to approve any product that invest within the quality itself or something apart from CME futures contracts at this stage. Balchunas confirmed:
“Would be interesting (and poss) if they let the Inverse one go through. That one was limited to futures. Valkyrie’s was a bit of a departure from that language.”
(Martin Young, Cointelegraph, 2021)