Would You like a feature Interview?
All Interviews are 100% FREE of Charge
A new 2x leveraged exchange-traded fund (ETF) backed by bitcoin (BTC) futures is set to go live on Tuesday after the Securities and Exchange Commission (SEC) apparently gave it the go-ahead. .
The ETF, sponsored by the Volatility Shares Trust, will be listed on the CBOE BZX exchange under the ticker BITX, according to the SEC. filing.
The filing further states that the fund “seeks an investment outcome equivalent to twice (2x) the return of the Chicago Mercantile Exchange’s (CME) Bitcoin Futures Daily Roll Index.”
The management fee for the ETF will be 1.85%, well above the 0.95% charged by BITO, the first Bitcoin futures ETF in the United States.
The news that the ETF was about to go live was shared on Twitter by Bloomberg Senior ETF Analyst Eric Balchunas, who initially said he was “skeptical that it would actually go live.” It now “seems to be official,” he added.
In his tweet, Balchunas also speculated that the apparent regulatory approval could be an “early sign of SEC easing” on the idea that perhaps other types of bitcoin ETFs will emerge in the future. bottom.
The Bitcoin community expects that one of the new types of Bitcoin ETFs that the SEC may be preparing is spot Bitcoin ETFs, such as the one BlackRock filed to list on June 15. ing.
Following BlackRock, other asset managers such as Valkyrie Fund, WisdomTree and Invesco have also applied to list similar spot-based Bitcoin-backed ETFs.
The Spot Bitcoin ETF is different from the Bitcoin ETF currently traded in the US. All of these are backed by Bitcoin futures contracts rather than actual Bitcoin.
It is widely believed that a genuinely backed investment product could create more physical demand for Bitcoin, which could lead the price to new highs.
Commenting below Balchunas’ tweet, several Twitter users noted how it would make no sense from an investor protection perspective for leveraged futures-based ETFs to be approved before simple spot-based ETFs. It pointed out.
“Yes, 2x Bitcoin futures really protect investors,” one Twitter user sarcastically said. I have writtenanother called the situation “ridiculous”, saying:
“Looking back at the Bitcoin ETF story in 5 or 10 years, this is going to be one of the most ridiculous aspects… 2x leveraged futures products launch before simple spot ETFs. Wild. “