According to some recent reports, the US Securities and Exchange Commission (SEC) has recently rejected at least one of the Bitcoin ETF’s applications for leveraged Bitcoin, due to the risky nature of leveraged financial products.

Mention the report The Wall Street Journal reported that the regulator plans to only allow non-Bitcoin-based products at this time.

The latest announcement from the SEC came about two days after “Valkyrie” filed for a bitcoin futures ETF.

Direxion also applied for a reverse fund, meaning those who bet on the price going down.

Eric Balchonas, chief ETF analyst at Bloomberg, highlighted the recent disapproval reports and said it would be interesting to see if the SEC would allow the reversal fund to pass.

He added:

The SEC appears to be tolerant only of Bitcoin futures ETFs.

But it can’t hurt to try though.

Had they passed, billions of dollars’ worth of vehicles could potentially be in circulation within a few years.

It would be interesting if they let the inverted box through.

Optimistic about the Bitcoin ETF:

Bitcoin and most other cryptocurrencies touched all-time highs after the recent bullish momentum of the cryptocurrency driven by the SEC approval of the Bitcoin ETF in the United States.

However, the latest reports indicate that the Securities and Exchange Commission (SEC) opposes leveraged cryptocurrency trading products.

The Securities and Exchange Commission (SEC) has thus maintained its tough stance on Bitcoin and other digital currencies in the past few months.

In an interview with CNBC, SEC Chairman Gary Gensler described bitcoin as a speculative asset.

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