SEC Approval of the BITX Fund
The first leveraged Bitcoin futures exchange-traded fund (ETF), Volatility Shares 2X Bitcoin Strategy ETF (BITX), has been approved by the US Securities and Exchange Commission (SEC). The Chicago Board Options BZX Exchange will debut it on June 27, 2023.
The goal of the fund is to find investment returns that are twice as high as the CME Bitcoin Futures Daily Roll Index. An ETF, which bundles securities like stocks and commodities, allows investors to have exposure to such securities without actually holding them.
Bitcoin futures and Bitcoin spot are the two primary forms of bitcoin exchange-traded funds (ETFs). As a leveraged exchange-traded fund (ETF), BITX will use Bitcoin futures to boost an index’s performance. The announcement was widely welcomed by cryptocurrency supporters, although others questioned why a straightforward spot ETF debuted before a 2X leveraged futures offering. In light of recent efforts by major conventional financial institutions to enter the bitcoin sector, the SEC has approved the BITX fund.