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Bitcoin exchange traded funds (ETFs) are the new talk of the town. The trend has seen a surge as traditional finance (TradFi) giants are willing to launch their BTC ETFs. the crypto market is likely to witness a new Bitcoin futures ETF from the ETFs provider Volatility Shares.
Prominent exchange traded funds provider, including crypto ETFs, Volatility Shares Trust will start trading its 2X Bitcoin Strategy ETF. The first of its kind leveraged Bitcoin futures ETF will be trading on Chicago Board Options (CBOE) BZX Exchange from Tuesday, June 27 under the ticker “BITX.”
The company filed for the listing of the product with the SEC on Friday, June 23. And according to the company’s official website, the leveraged Bitcoin futures ETF will start trading from the aforementioned date of next week.
Though it’s important to note that neither the Securities and Exchange Commission (SEC) nor Commodity Futures Trading Commission (CFTC) has approved or rejected the application. And that the company is planning to launch the financial product considering the regulators did not reject the application.
Exchange traded funds (ETF) is a financial product which sums up stocks and commodities in the offering. ETFs give exposure of the underlying assets to the investors without making a direct investment in those assets. Primarily, Bitcoin ETFs are of two types, futures and spot ETFs.
Volatility Shares Trust’s leveraged futures Bitcoin ETF will not make a direct investment in BTC. Rather, it will seek investment and benefit from the Bitcoin Futures Contracts price increase. The filing noted that the Chicago Mercantile Exchange (CME) Bitcoin Futures Daily Roll Index will be the correspondence for the 2X leveraged ETF.
The SEC has not approved any spot BTC offering citing the risks involved. However, futures ETF offerings of the biggest cryptocurrency from players like ProShares and Valkyrie were approved.
Bitcoin spot ETFs remained another issue of tussle between entities willing to offer and the SEC which did not approve any of it. Grayscale went on to file a lawsuit against the US financial regulator for not approving its application for the ETF.
Despite the discouraging rejection, the number of such ETF applications has increased off late. Asset management giant BlackRock filed for a Bitcoin spot ETF with the SEC. With the biggest asset manager stepping in the space to expand its crypto offerings, many others followed the path.
WisdomTree and Invesco took steps forward to file for their own ETFs. Valkyrie Funds, which already runs a Bitcoin futures ETF, went on to file an application for a spot ETF. Amid these filings, another prominent asset manager Fidelity Investments also to filed for a spot BTC offering.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
