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US SEC will not greenlight leveraged bitcoin fund - WSJ

US SEC will not greenlight leveraged bitcoin fund - WSJ

FILE PHOTO: A representation of the virtual cryptocurrency bitcoin is seen in this picture illustration taken October 19, 2021. REUTERS/Edgar Su/File Photo

The U.S. Securities and Exchange Commission (SEC) has asked at least one asset manager to scrap plans for a leveraged bitcoin exchange-traded fund, the Wall Street Journal reported on Wednesday, citing a person familiar with the matter.

The SEC signaled it wants to limit new bitcoin-related products to those that provide unleveraged exposure to bitcoin futures contracts, the report said.

SEC approval for ProShares Bitcoin Strategy ETF, the first U.S. bitcoin futures-based exchange-traded fund, was seen as a turning point for cryptocurrencies and pushed up bitcoin prices. The fund began trading last week.

The SEC did not immediately respond to a Reuters request for comment.

(Reporting by Amruta Khandekar; Editing by Devika Syamnath)

Source: Reuters

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