{"id":12897,"date":"2021-10-29T05:42:49","date_gmt":"2021-10-29T04:42:49","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=12897"},"modified":"2021-10-29T05:42:58","modified_gmt":"2021-10-29T04:42:58","slug":"report-shows-sec-will-not-allow-leveraged-bitcoin-etfs","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/report-shows-sec-will-not-allow-leveraged-bitcoin-etfs\/","title":{"rendered":"Report shows SEC will not allow leveraged Bitcoin ETFs"},"content":{"rendered":"\n
As stated in the\u00a0\u00a0Wall Street Journal, the SEC <\/a>has instructed at least one asset manager not to proceed with preparations for a leveraged Bitcoin ETF.<\/h5>\n\n\n\n
\"Report<\/figure>\n\n\n\n

According to a report, the US Securities and Exchange Commission\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> (SEC) would not allow leveraged Bitcoin Exchange-Traded Funds (ETFs).<\/p>\n\n\n\n

An exchange-traded fund is a type of financial product that monitors the price of a certain asset. This means that investors can invest in the asset without actually owning it.<\/p>\n\n\n\n

There are several advantages to investing in an ETF rather than the asset itself. In the case of Bitcoin, investors who are unfamiliar with the crypto world may consider such a fund an easier way to invest because they no longer need to deal with digital currency exchanges and wallets.<\/p>\n\n\n\n

Another advantage is the ability to trade both long and short positions. When you hold BTC<\/a>, you only profit when the price rises. However, trading in ETFs allows for gains in either way.<\/p>\n\n\n\n

The ProShares ETF became the first Bitcoin fund to start earlier this month, and it saw record-breaking demand. Asset managers are now trying to launch more crypto-related products, with a leveraged ETF being one of the possibilities.<\/p>\n\n\n\n

However, as previously stated, the SEC has already barred one of the prospectors from proceeding with it.<\/p>\n\n\n\n

“Regulators have been limiting product launches in an effort to reduce investor exposure to products that they believe prone to fraud, manipulation, and other dangers,” according to the paper.<\/p>\n\n\n\n

BTC ETFs Set New Records in Their First Week<\/h2>\n\n\n\n

According to the most recent Arcane Research study, the Bitcoin ETF debut 10 days ago was a huge success, with tremendous numbers in the first week.<\/p>\n\n\n\n

ProShares<\/a>‘ BITO fund became the fastest to reach $1 billion in assets. It took two days to reach the milestone, whereas the SPDR Gold Shares took three days.<\/p>\n\n\n\n

Valkyrie's BTF also debuted last week, with a trading volume of roughly $80 million on day one. This made the ETF the 15th most successful launch in history.<\/p>\n\n\n\n

\"Report<\/figure>\n\n\n\n

The debut of the ETF boosted Bitcoin's price, allowing it to achieve a new all-time high slightly below $67k.<\/p>\n\n\n\n

Here's a chart showing how the coin has risen in value over the last month:<\/p>\n\n\n\n

\"Report<\/figure>\n","protected":false},"excerpt":{"rendered":"

As stated in the\u00a0\u00a0Wall Street Journal, the SEC has instructed at least one asset manager not to proceed with preparations for a leveraged Bitcoin ETF. According to a report, the US Securities and Exchange Commission (SEC) would not allow leveraged Bitcoin Exchange-Traded Funds (ETFs). An exchange-traded fund is a type of financial product that monitors […]<\/p>\n","protected":false},"author":13,"featured_media":12900,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[1742,143],"class_list":["post-12897","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bitcoin-etfs","tag-sec"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2021\/10\/image-140.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/12897","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=12897"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/12897\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/12900"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=12897"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=12897"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=12897"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}