Valkyrie officially withdraw their leverage Bitcoin ETFs application

Finally, Valkyrie Investments gave up their plan to launch 1.25x leverage Bitcoin ETFs. 

On 28 October, Bloomberg reported about the rejection of the filed application for Bitcoin ETF based second product of Valkyrie. 

At that time, Valkyrie Investments firm didn’t respond to the news published by Bloomberg on the rejection of 1.25 leverage Bitcoin ETFs application. 

On 29 October, Valkyrie Investments officially revealed all about it through their application. 

However, the information about the planning to take the 1.25× application back was shared by Eric Balchunas- Bitcoin ETF analyst at Bloomberg- on Twitter. 

Valkyrie Investments’ second Bitcoin ETFs products 

As we know Valkyrie already has its first Bitcoin futures ETF product live. But the second leveraged based Bitcoin Futures ETF was filed by the firm on 26 October. 

It seems that Valkyrie was crazy and confident after the first approval of the Bitcoin ETF by the US regulatory agency. 

Problem with Leveraged Bitcoin Futures ETFs 

The US securities and exchange commission already warned people about Futures trading based products. And after the approval of the first Bitcoin Futures ETF through pro shares, the SEC agency confirmed that they don’t believe in bitcoin futures as a better option to make earnings, that is why the agency warned people to go with such products. 

But here, Valkyrie took one step toward the next level. The firm filed for leveraged ETFs. The higher the leverage, the higher will be the risk. But as we know 1.25 leverage is not big leverage in Crypto but here SEC agencies don’t want to take risks and are inclined to provide a better ecosystem in crypto. 

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