What the media relayed early in the morning made the crypto community happy. This is theSEC Approves Creation of First Bitcoin Futures ETF.
ETF Bitcoin Futures, the SEC takes a big step
According to Jan van Eck, there is “zero chance” that US regulators will allow the creation of a Bitcoin Spot ETF. Grayscale must withdraw its request or wait even longer for the validation of its similar project.
But to see the last newsthe SEC has just approved the first Bitcoin futures ETF with leverage.
” Breaking: The SEC has cleared the launch of the first leveraged Bitcoin ETF in the United States.
Soon a Spot ETF? »
The initiative, dubbed ” Volatility Shares 2x Bitcoin Strategy ETF (BITX) comes directly from Volatility Shares. Its new financial product will be available to traders on Chicago Board Options (CBOE) BZX Exchange on Tuesday.
” It’s exciting to see digital assets in the envelope of an ETF exclaims Stuart Barton, chief investment officer of Volatility Shares.
What is a leveraged Bitcoin ETF?
An ETF is a exchange-traded fund that consists of several securities (equities, commodities, etc.). Thanks to ETFs, investors can buy shares without directly holding securities.
In the case of BTC ETFs, Decrypt highlighted two variants: bitcoin futures and spot bitcoin.
As for BITX, the leveraged Bitcoin ETF from Volatility Shares, Benchmark return amplification is based on debt or financial derivatives.
Note that leveraged Bitcoin ETFs can result in short-term gains or colossal losses.
Bitcoin is doing well
Bitcoin, which recently passed the $30,000 mark, surprised many yesterday. Admittedly, it hadn’t come back to $138,000 like it did lately on Binance.US, but trading at $31,180.
Investors, while marveling at the SEC’s decision on Volatility Shares’ Bitcoin futures ETF, are still looking for good opportunities to ‘buy the dip’.
Returning to the SEC, its change of position regarding cryptocurrencies and digital assets of the same ilk would be dictated by several things. If the pressure from American elected officials have had no effect, the announcement of BlackRock’s Bitcoin ETF projects certainly did its part.
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