First Leveraged Bitcoin Futures ETF to Launch in the US By CriptoFácil

2023-06-24 01:00:21

© Reuters. First Leveraged Bitcoin Futures ETF Launches in the US

CriptoFácil – Volatility Shares achieved a historic milestone in the US financial sector. Its Exchange Traded Fund (ETF) called 2x Strategy ETF (BITX) will be the first leveraged cryptocurrency ETF available in the US.

Stuart Barton, director of investments at Volatility Shares, revealed this Friday (23) that the US Securities and Exchange Commission (SEC) has approved the fund. The SEC, however, has yet to confirm the approval.

According to Barton, this paves the way for its launch next Tuesday and marks an important win for the cryptocurrency industry and also paves the way for the possible approval of a BTC spot ETF.

“It’s exciting to see digital assets in the ETF structure,” said the executive.

A two-fold leveraged ETF allows clients to gain exposure to leveraged Bitcoin. That is, the amount invested is theoretically multiplied by two. The prospectus statement said the ETF would match the CME Daily Bitcoin Futures Index.

ETF de Bitcoin

This advance comes after Bitcoin’s steady rise, which recently crossed the $30,000 mark after several traditional investment firms such as BlackRock (NYSE:) petitioned the SEC to approve Bitcoin ETFs in the spot market.

However, the path for BTC ETFs has long been paved. The first request for a Bitcoin ETF in the US dates back to 2013, when the Winklevoss brothers unsuccessfully tried to get SEC approval to launch such a product.

However, in October 2021, the financial scene in the United States witnessed a turning point for the cryptocurrency industry, with the approval of the first BTC futures ETFs.

At that time the SEC, under the leadership of chairman Gary Gensler, gave the green light to launch the ProShares Bitcoin Strategy ETF, an exchange-traded fund that tracks BTC futures, not the cryptocurrency itself.

This move marked a notable shift in the regulatory outlook on cryptocurrencies and paved the way for greater institutional adoption of Bitcoin.

By CriptoFacil