According to a person familiar with this situation, the Securities and Exchange Commission (SEC) has asked at least one asset manager to reject the concept for a leveraged Bitcoin exchange-traded fund (ETF). 
<h2>Why The SEC Decided to Reject the Concept for a Leveraged Bitcoin ETF?</h2>
According to the person, the SEC has indicated that it wants to limit new Bitcoin-related products to those that offer unleveraged exposure to Bitcoin futures contracts, such as the<a href="https://www.cryptoknowmics.com/news/proshares-bitcoin-etf-hits-1b-aum-in-just-two-days/"> ProShares Bitcoin Strategy ETF</a> BITO, which was <a href="https://www.wsj.com/articles/bitcoin-etfs-success-could-come-at-fundholders-expense-11635080580?mod=article_inline&amp;mod=article_inline&amp;adobe_mc=MCMID%3D51625123143868965551199581333751578843%7CMCORGID%3DCB68E4BA55144CAA0A4C98A5%2540AdobeOrg%7CTS%3D1635404079" target="_blank" rel="nofollow noopener">launched </a>last week. 

The decision is the biggest obstacle in the asset’s management industry efforts to capitalize on the investor industry in cryptocurrencies by launching new products. 

Product launches have been slowed by regulators to limit investor exposure to offerings that they believe are vulnerable to fraud, manipulation, and other risks.

Valkyrie Investments proposed on Tuesday to launch a fund that would use 1.25 times leverage, or borrowed money, to boost the daily returns of a portfolio of Bitcoin derivatives, including futures contracts and options. 

According to the person familiar with the discussions, Valkyrie was asked to withdraw its proposal.

Valkyrie's filing was still active as of Wednesday afternoon.
<h2>About Direxion</h2>
Later that day, <a href="https://www.cryptoknowmics.com/news/u-s-sec-rejects-valkyries-leveraged-bitcoin-futures-etf/">Direxion</a> filed plans for an ETF that would effectively allow investors to bet against the Bitcoin futures contracts used by the ProShares ETF. Direxion refused to comment.

Direxion provides investors who are motivated by conviction with ETF solutions that are purpose-built and precision-tuned. 

These solutions are available to a wide range of investors, whether they are looking to execute short-term tactical trades or invest in these strategies. 

Direxion's reputation is built on the development of products that accurately convey market viewpoints and allow investors to control their risk exposure. 

As of June 30, 2021, the <a href="https://www.direxion.com/" target="_blank" rel="nofollow noopener">business </a>has roughly $26.6 billion in assets under management.

The US SEC Announces that it will Reject the Concept for a Leveraged Bitcoin ETF

According to a person familiar with this situation, the SEC has asked at least one asset manager to reject the concept for a leveraged Bitcoin ETF.

Kavya Barua is a voracious learner who is fascinated by crypto and Fintech advancements. Graduated from Janki Devi Memorial College's B.A (Hons) English program at the University of Delhi. She aspires to be a successful professional, having a keen interest in learning and achieving results.

The US SEC Announces that it will Reject the Concept for a Leveraged Bitcoin ETF

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