- The United States’ first leveraged Bitcoin futures ETF is set to launch tomorrow
- Volatility Shares’ 2x Bitcoin Strategy ETF has not been rejected by the SEC
- The ETF will be listed on the Chicago Board Options Exchange
Tomorrow will see the launch of the first leveraged Bitcoin futures ETF providing the Securities and Exchange Commission (SEC) doesn’t spring a last-minute surprise. Volatility Shares 2x Bitcoin Strategy ETF (BITX) is scheduled to launch on the Chicago Board Options (CBOE) BZX Exchange in what some have seen as a sign of the SEC lightening up towards Bitcoin. According to the SEC filing, BITX “seeks investment results that correspond to two times (2x) the return of the Chicago Mercantile Exchange (CME) Bitcoin Futures Daily Roll Index”.
Does the Absence of a ‘No’ Mean ‘Yes’?
While the excitement surrounding a potential softening of the SEC’s stance over Bitcoin has got some excited, Volatility Shares does issue a note of caution on its website, with the company noting that the vehicle “has not yet become effective,” with its optimism merely coming from the fact that the SEC hasn’t explicitly denied its application.
With the deadline now able to be measured in hours rather than weeks, it would be cruel of the SEC to turn around and reject it now, but as we know this wouldn’t be beyond them.
The 2x bitcoin ETF $BITX has become effective, scheduled to launch Tuesday. I was doubtful it would happen but looks like it’s official. Could this be early sign of SEC lightening up? After $BITO launch I believe they made earlier 2x filers withdraw pic.twitter.com/XXxSt9xypu
— Eric Balchunas (@EricBalchunas) June 23, 2023
A separate SEC Form N-1A filing for listing shares of the leveraged Bitcoin futures ETF on the CBOE BZX Exchange stated that neither the SEC nor the U.S. Commodity Futures Trading Commission had “approved or disapproved these securities or passed upon the accuracy or adequacy of this prospectus.”
The launch of Bitcoin Futures in November marked the top of the prior bull market, and some are worried it could have the same effect on the current bear market rally.
