Valkyrie’s Leveraged Bitcoin Futures ETF Blocked by SEC 2

Reports claimed that US regulators revoked the request of Valkyrie’s leveraged based Bitcoin ETFs application because of potential risk. 

In the present time, a Bitcoin futures ETF product of Valkyrie is live, which got approval this month by the United States Securities and Exchange Commission. Now Valkyrie firm is looking to become a high-level player. 

On 26 October, Valkyrie filed for the 1.25× leverage Bitcoin ETFs Product. But according to the WSJ report WSJ, the filed request has been blocked by the SEC agency because the agency found that an increment in the leverage of Bitcoin futures ETFs products will lead to high risk for the traders. 

Since this report is published by WSJ, there is nothing much clear about this matter. Even there is no more confirmation or response by Valkyrie, whether they will struggle for the approval of this leveraged based ETFs product. 

Here it should not be taken into consideration that Valkyrie’s first ETFs product will get any kind of issue from this blockage of the SEC. 

SEC chair in Leveraged Bitcoin ETFs 

Every crypto trader in the crypto space knows very well how futures trading is a risky trading product.

Before the approval of the first Bitcoin Futures ETFs product, Gary Gensler, SEC chairman, talked about the associated risk with futures trading, especially high leveraged bitcoin futures trading, through the education account of the SEC agency. 

However, at that time, Gary didn’t reveal whether they will block high leverage Futures ETF application or not but warned people against furthers & smart contract-based trading. 

Read also: Real estate developer Prometheus International accepts Cardano

Similar Posts