The First Leveraged Bitcoin Futures ETF has been approved to launch by the US Securities and Exchange Commission (SEC) for the first time in the US. The ETF, known as the 2x Bitcoin Strategy ETF (BITX), has been developed by Volatility Shares and is set to commence trading on Tuesday.
This move by the SEC follows recent enforcement actions against major cryptocurrency exchanges, Coinbase and Binance. The approval of a leveraged Futures ETF marks a notable milestone for the cryptocurrency industry in the United States.
Details of the Approved ETF
The Volatility Shares’ 2x Bitcoin Strategy ETF, also referred to as BITX, has received the green light from the SEC, making it the first leveraged crypto ETF to be approved in the US. The ETF offers investors the opportunity to purchase Bitcoin Futures contracts with double leverage, allowing them to amplify potential returns. Trading of BITX will be based on the price movements of the CME Bitcoin Futures Daily Roll Index. This ETF is expected to provide greater accessibility to investors compared to trading on platforms like CME.
Advantages of the Leveraged Bitcoin Futures ETF
The approval of the leveraged Bitcoin Futures ETF by the SEC brings several advantages for investors. Those who already possess securities accounts can immediately engage in trading without having to navigate the procedures and meet the stringent requirements associated with trading on the CME. By allowing investors to gain exposure to Bitcoin with half the value of the cryptocurrency, BITX provides a more accessible and simplified approach to the crypto market.
The SEC’s decision to approve the Volatility Shares’ leveraged Bitcoin Futures ETF arrives at a time when Bitcoin has witnessed a recent surge in its price, surpassing the $30,000 mark. The positive sentiment surrounding Bitcoin has been further bolstered by news of BlackRock’s plans to introduce Bitcoin spot ETFs. While the approval of a Futures ETF is encouraging, there remains a lingering question as to whether the SEC will eventually green-light Bitcoin spot trading offerings.
The SEC’s approval of the Volatility Shares’ 2x Bitcoin Strategy ETF represents a significant milestone for the cryptocurrency market in the United States. With the launch of this leveraged Bitcoin Futures ETF, investors will have a new avenue to gain exposure to Bitcoin with amplified potential returns. As the crypto space continues to evolve, the decision by the SEC may pave the way for further innovation and adoption of cryptocurrency-related investment products in the future.