The Securities and Exchange Commission (SEC) is seeking to pull a cryptocurrency ETF filing by Valkyrie Investments that would let investors borrow 1.25 times their investments. The proposed crytocurrency exchange-traded fund would invest in futures contracts and options, The Wall Street Journal reports.
Direxion has filed with the SEC this week to offer a futures crytocurrency ETF that would bet against yet another crypto ETF, from ProShares.
SEC sources have told the Journal that officials at the Commission asked Valkyrie to withdraw its listing and that they are increasingly concerned about leveraged crypto ETFs being brought to market.
LIke the Commodity Futures Trading Commission (CFTC), the SEC has no direct oversight of the private exchanges on which cryptocurrencies currenty trade. However, both the CFTC and the SEC share a common interest in protecting the investing public and reigning in a market that now has more than $80 billion in assets. Fraud, manipulation and other risks, are regulators' top-line concerns, the WSJ says.
COVID-19 Crypto Payday
In other cryptocurrency news Thursday, pennlive.com reports that if an American citizen took their $1,200 COVID-19 stimulus check 18 months ago and put it into a cryptocurrency -- they would have seen a 800% increase in their investment.
Put another way, that $1,200 investment could be worth about $11,000 today.
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