According to reports, the US Securities and Exchange Commission (SEC) recently rejected one/two Bitcoin (BTC) ETF applications. This is widely perceived as a signal that the SEC is yet reluctant to approve exotic futures products.
A levered Bitcoin futures ETF was filed by Valkyrie. An inverse fund for bears was filed by Direxion. SEC rejected both the filings.
What does the rejection signify?
Bloomberg’s ETF analysts pointed to the Dow Jones alert on the Valkyrie rejection by the SEC, and indicated that the inverse fund application is also likely to meet the same fate.
A separate Dow Jones alert put out that the SEC was only keen on direct futures products. This was meant to signal a keenness only for those funds that purchase from the Chicago Mercantile Exchange(CME).
The SEC it was felt was not keen on products that invest in the asset itself. More broadly, in anything except CME futures.
Meanwhile, ETF store reported that there were applications for two more ETFs. These investments were made by AXS investments. The filings with the SEC are for Bitcoin strategy ETF. These filings are resemble the two which have already been approved. They are also similar to another shorting or inverse fund.
According to a different Dow Jones report, Grayscale believe that approval will be accorded by SEC to a spot Bitcoin ETF by July 2022.
Geraci, however, was skeptical of SEC being able to regulate crypto market/exchanges. In other news, VanEck is said to be preparing to launch Bitcoin strategy ETF. This will be traded with the XBTF ticker. It was forecast that it would start trading on Friday, Oct 29.