The US SEC has approved the first leveraged bitcoin futures ETF. The Volatility Shares 2x Bitcoin Strategy ETF will launch on Cboe BZX on Tuesday, June 27th.
The U.S. Securities and Exchange Commission (SEC) on Friday approved the first leveraged bitcoin futures exchange-traded fund (ETF). The Volatility Shares 2x Bitcoin Strategy ETF (BITX) will launch on June 27 on the Chicago Board Options Exchange (CBOE) BXZ exchange.
Bitx will be launched on June 27th
ETFs allow investors to invest in a specific product without owning it directly. ETFs bundle securities from which investors can buy shares to gain exposure to the product without owning bitcoin itself. Bitcoin ETFs come in two forms: Bitcoin Spot ETFs and Bitcoin Futures ETFs.
Bitx will be a leveraged ETF. In the case of leveraged ETFs, the fund uses debt or financial derivatives as leverage to increase the return of a benchmark index. The leveraged 2x ETF allows investors to gain exposure to BTC by putting in as little as 50% of the value of BTC. Bitcoin spot ETFs are funds that track the value of bitcoin rather than futures contracts. Spot ETFs buy bitcoin directly, allowing investors to gain exposure to bitcoin without having to buy, store or manage it themselves.
bitcoin exchange SEC filing Indicates the fund:
Seek investment results equivalent to twice (2x) the return of the Chicago Mercantile Exchange (CME) Bitcoin Futures Daily Rolling Index.
Bitcoin Tops $30,000 During ETF Filing
Bitcoin has reacted positively to a recent flurry of ETF filings. At the time of writing, bitcoin It traded at $30,640, holding above the $30,000 mark.
Bitcoin prices rose this week after numerous financial industry players announced their intention to create a bitcoin ETF.
BlackRock, the world’s largest asset management company, announced last week that it has submitted an application for a bitcoin spot ETF. While there is optimism that BlackRock’s ETF application will be the first to be approved, analysis suggests it is unlikely to be granted any time soon due to regulatory hurdles raised by the SEC and its chairman, Gary Gensler. approve.
Like any financial product, the approval process for Bitcoin ETFs involves intense scrutiny from regulators such as the U.S. Securities and Exchange Commission (SEC).
BlackRock’s ETF filing sparked a flurry of ETF filings from firms including Valkyrie, WisdomTree and Invesco. Rumors also suggest that Fidelity is filing an application for a bitcoin spot ETF.
Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.