TL;DR: The US Securities and Exchange Commission (SEC) has approved Volatility Shares’ 2x Bitcoin Strategy ETF (BITX), making it the first leveraged crypto ETF available in the United States. The ETF allows investors to gain Bitcoin exposure by putting up only half the value of the cryptocurrency. The launch comes amid increasing interest in Bitcoin and the broader cryptocurrency market, with major traditional investment companies exploring spot Bitcoin ETFs. This approval sets a precedent for future leveraged crypto ETFs and demonstrates the SEC’s growing openness to digital assets.
Volatility Shares’ 2x Bitcoin Strategy ETF (BITX) Becomes First Leveraged Crypto ETF in the US
Volatility Shares’ 2x Bitcoin Strategy ETF (BITX) has received approval from the U.S. Securities and Exchange Commission (SEC) to become the first leveraged crypto ETF in the United States, CoinDesk Reported citing an executive at the company.
Stuart Barton, Chief Investment Officer at Volatility Shares, expressed enthusiasm for the ETF’s approval, stating, “It’s exciting to see digital assets in the ETF wrapper.”
According to Stuart, the ETF will go into effect on Friday and is set to launch this upcoming Tuesday.
The SEC’s decision marks a significant milestone in the cryptocurrency industry, as it allows investors to gain exposure to Bitcoin through a leveraged ETF.
The 2x ETF enables customers to acquire Bitcoin exposure by putting up only half the value of the cryptocurrency, offering a more accessible investment option.
The ETF’s prospectus filing indicates that it will track the CME Bitcoin Futures Daily Roll Index, aligning its performance with the Bitcoin futures market. This strategy aims to provide investors with returns that are twice the daily price movements of Bitcoin futures contracts.
The approval of the 2x Bitcoin Strategy ETF comes amidst a period of increased interest in Bitcoin and the broader cryptocurrency market. Bitcoin’s value has been steadily rising, recently surpassing the $30,000 mark. The growing popularity of digital assets has prompted major traditional investment companies like BlackRock to file applications for spot Bitcoin ETFs with the SEC.
While the SEC has consistently blocked the launch of spot-based ETFs, several futures-based ETF products are already trading. However, leveraged Bitcoin futures products have struggled to secure the necessary approvals for their launch.
Volatility Shares’ BITX ETF will offer investors a unique opportunity to amplify their exposure to Bitcoin, potentially attracting both seasoned cryptocurrency traders and traditional investors seeking entry into the digital asset space. The ETF’s approval sets a precedent for future leveraged crypto ETFs and signals the SEC’s increasing openness to exploring new investment avenues within the evolving cryptocurrency landscape.
As the crypto industry continues to gain recognition and mainstream adoption, the availability of leveraged crypto ETFs in the United States could open doors to further innovation and investment opportunities within the market.
Investors and industry observers will be closely watching the launch of Volatility Shares’ 2x Bitcoin Strategy ETF next week to gauge its reception and assess the impact it may have on the broader cryptocurrency ecosystem.