The US Securities and Exchange Commission (SEC) has approved the first leveraged Bitcoin futures exchange-traded fund (ETF), Volatility Shares 2X Bitcoin Strategy ETF (BITX). It is scheduled to launch on the Chicago Board Options BZX Exchange on 27 June, 2023.
The fund looks for investment returns that are equivalent to double the return of the CME Bitcoin Futures Daily Roll Index. Investors can purchase shares of an ETF, which bundles securities like equities and commodities, to receive exposure to those securities without actually owning them.
There are two main types of Bitcoin ETFs: Bitcoin futures and Bitcoin spot. BITX will be a leveraged ETF, using Bitcoin futures as leverage to amplify the returns of a benchmark index. The news was largely applauded by proponents of cryptocurrencies, but others wondered why a simple spot ETF launched before a 2X leveraged futures offering. The BITX fund was approved by the SEC as large traditional financial institutions look to enter the cryptocurrency market recently.
Source:coinmarketcap.com
