SEC Breaks New With Bitcoin ETF Approval

While the cryptocurrency markets are waiting for spot Bitcoin ETF approval with great excitement, the US Securities and Exchange Commission (SEC) has approved a new product in this investment area. Heading into the weekend, the SEC has announced that it has approved the Volatility Shares 2X Bitcoin Strategy ETF (BITX), the first leveraged Bitcoin futures ETF.

The U.S. Securities and Exchange Commission has opened the door to this type of investment by granting the futures Bitcoin ETF approval in recent years. However, the SEC, which is not welcoming to spot Bitcoin ETF products, has rejected many applications for this product. In the past weeks, the issue has come up again with BlackRock’s spot BTC ETF application. In the current situation, the SEC, in a surprise, has approved the Volatility Shares 2X Bitcoin Strategy ETF (BITX), the first leveraged Bitcon ETF. The ETF is expected to launch on the Chicago Board Options BZX Exchange on June 27, 2023.

The ETF will track the CME Bitcoin Futures Daily Roll Index return and offer investment risk equivalent to twice that index. Thus, investors will be able to benefit from the opportunity of up to 2x leveraged transactions with this ETF while making indirect Bitcoin investments. This development has been welcomed by crypto investors. Bitcoin, which recorded the highest level of the year by rising to the band of $ 31,400 before entering the weekend, moved horizontally at an average of $ 30,500 in weekend transactions.

Market commentators agree that this type of investment product may be of interest in recent days, when crypto markets are in demand by financial giants. However, there are also those who think that the direct effect on the cryptocurrency price will be limited due to the fact that the product is a futures Bitcoin ETF. That’s why market participants care more about spot Bitcoin ETF approval.