SEC Rejected Bitcoin ETF From Valkyrie and Direxion
The US Securities and Exchange Commission may have rejected applications for Bitcoin ETFs from Valkyrie and Direxion.
Valkyrie applied to create a leveraged Bitcoin ETF, and Direxion applied to create a Bitcoin ETF with the opposite effect.
On October 28, Bloomberg’s senior ETF analyst Eric Balchunas, citing the Dow Jones, said the SEC had closed the Valkyrie debt fund, and that Direxion may be looking forward to the same.
Direxion applied for the Bear Strategy Bear ETF on October 26th. They should have been allowed to buy short futures at the BTC price. On the same day, Valkyrie applied for a BTC futures ETF that would offer 1.25x the exposure of the asset.
Direxion’s product would invest exclusively in futures, while Valkyrie’s product would have futures, swaps, options and forwards.
According to Dow Jones, the SEC may only be interested in direct futures funds that buy contracts on the Chicago Mercantile Exchange (CME). And other products that invest in the asset itself are not yet of interest to the Commission.
ETF Store President Nate Geraci said two more ETFs were filed from AXS Investments on October 27. The SEC filing is for a regular Bitcoin strategy ETF, similar to the two already approved, as well as another short or reverse fund.