{"id":27722,"date":"2023-06-26T14:54:39","date_gmt":"2023-06-26T18:54:39","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/volatility-shares-trust-seeks-sec-approval-for-leveraged-bitcoin-futures-etf\/"},"modified":"2023-06-26T14:54:40","modified_gmt":"2023-06-26T18:54:40","slug":"volatility-shares-trust-seeks-sec-approval-for-leveraged-bitcoin-futures-etf","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=27722","title":{"rendered":"Volatility Shares Trust Seeks SEC Approval for Leveraged Bitcoin Futures ETF"},"content":{"rendered":"
\n

A new exchange-traded fund (ETF) backed by Bitcoin (BTC) futures and with 2x leverage is set to go live on Tuesday after the Securities and Exchange Commission (SEC) appears to have given the greenlight.<\/p>\n

The ETF, sponsored by Volatility Shares Trust, will be listed on the CBOE BZX Exchange under the ticker BITX, according to an SEC filing.<\/p>\n

The filing further explained that the fund \u201cseeks investment results that correspond to two times (2x) the return of the Chicago Mercantile Exchange (CME) Bitcoin Futures Daily Roll Index.\u201d<\/p>\n

The ETF\u2019s management fee will be 1.85%, well above the 0.95% that BITO, the first Bitcoin futures ETF in the US, charges.<\/p>\n

News that the ETF is set to go live was shared on Twitter by Bloomberg\u2019s senior ETF analyst Eric Balchunas, who said he was originally \u201cdoubtful it would happen,\u201d before adding that it now \u201clooks like it\u2019s official.\u201d<\/p>\n

<\/oembed><\/figure>\n

In the tweet, Balchunas also speculated that the apparent approval by the regulator could be an \u201cearly sign of SEC lightening up,\u201d perhaps to the idea of other types of Bitcoin ETFs down the road.<\/p>\n

It is hoped in the Bitcoin community that one of the new types of Bitcoin ETFs the SEC could be warming up to is a spot Bitcoin ETF, like the one BlackRock applied to list on June 15.<\/p>\n

Following BlackRock, other asset managers such as Valkyrie Funds, WisdomTree, and Invesco have all applied to list similar spot-based ETFs backed by Bitcoin.<\/p>\n

Spot Bitcoin ETFs differ from the Bitcoin ETFs that are currently traded in the US, which are all backed by Bitcoin futures contracts instead of actual Bitcoins.<\/p>\n

It is widely believed that an investment product backed by the real thing would generate more physical demand for Bitcoin, which in turn could drive the price up to new highs.<\/p>\n

Commenting under Balchunas\u2019 tweet, several Twitter users pointed out how little sense it makes from an investor protection standpoint that a leveraged futures-based ETF is approved before a simple spot-based ETF.<\/p>\n

\u201cYes 2x bitcoin futures really protects investors,\u201d one Twitter user ironically wrote<\/a>, while another called the situation \u201cridiculous,\u201d saying<\/a>:<\/p>\n

\n

\u201cWhen we look back on the bitcoin ETF saga in 5 or 10yrs, this will be one of the most ridiculous aspects\u2026 A 2x leveraged futures product launching before a straightforward spot ETF. Wild.\u201d<\/p>\n<\/blockquote><\/div>\n