- The SEC has approved the first leveraged Bitcoin futures ETF.
- Leveraged crypto ETFs offer more accessible investment opportunities.
The U.S. Securities and Exchange Commission has approved the first leveraged Bitcoin futures exchange-traded fund (ETF). Volatility Shares’ 2x Bitcoin Strategy ETF (BITX) becomes the first leveraged crypto ETF to get approved in the United States.
On June 23, Volatility Shares’ 2x Bitcoin Strategy ETF (BITX) received approval from the SEC. Moreover, it scheduled to launch on the Chicago Board Options (CBOE) BZX exchange on June 27.
An ETF (exchange-traded fund) is a bundle of securities. It allows investors to obtain the shares of an ETF to gain exposure to the securities without owning them directly. The leverage 2x ETF allows investors to get exposure to Bitcoin by investing half of its value.
Volatility Shares’ 2x Bitcoin Strategy ETF (BITX)
According to the report, BITX looks for investment results that correspond to the two times return of the Chicago Mercantile Exchange (CME) Bitcoin Futures Daily Roll Index. The SEC marks a remarkable milestone in the crypto industry by approving leveraged crypto ETF which offer more accessible investment opportunities.
Stuart Barton, Volatility Shares chief investment officer, stated that The regulator has not denied the application for the 2x ETF, paving the way for the launch of the 2x ETF. Moreover, he is excited to see digital assets in ETF wrapper.
The SEC has continually prevented the launch of spot-based ETFs. However, leveraged Bitcoin futures have bagged approval and become the first leveraged crypto ETF to get approved in the United States.
The approval comes after Bitcoin reaches the $30K mark. The launch of the 2x Bitcoin Strategy ETF expected to boost its value by offering wider investment options. Moreover, the investment banking company Blackrock has filed applications for spot Bitcoin ETFs with the SEC. The crypto market’s exceptional growth extends its recognition to more industries.
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