The SEC has rejected an application filed by Valkyrie Investments to launch a Bitcoin ETF based on CME-traded futures with 1.25x leverage, Bloomberg analyst Eric Balchunas has said.
The US Securities and Exchange Commission has made the decision a day after the application was filed. The proposal also includes investments in swaps, options and forwards.
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Balchunas has suggested the SEC is likely to do the same for Direxion's Bitcoin futures inverse ETF application. This tool aims to profit from short positions. Balchunas writes:
"Would be interesting (and poss) if they let the Inverse one go through."
The expert has also said Grayscale Investments expects to convert its Bitcoin trust into ETF by July 2022. This exchange-traded fund involves buying Bitcoins on the spot market.