The US Securities and Exchange Commission (SEC) has made a groundbreaking decision by approving its first leveraged Bitcoin Futures Exchange-Traded Fund (ETF). This development marks a significant milestone in the cryptocurrency industry and opens new avenues for investors. According to a report by Coindesk, the Volatility Shares’ offering is the first of its kind to be available in the United States and is scheduled to commence trading on Tuesday.
SEC Approves First Leveraged Bitcoin Futures
The approval of this registered futures ETF is a result of ongoing progress in the sector. BlackRock, a prominent asset management company, has already initiated plans for Bitcoin Spot ETFs. In contrast, the Volatility Shares futures ETF has received regulatory approval and is poised to go live in the coming week. While the cryptocurrency sector in the United States has recently faced regulatory concerns, with the SEC taking enforcement actions against major exchanges like Coinbase and Binance, the commission has now given the green light to a new crypto investment option in the country.
The SEC’s approval of the leveraged Bitcoin futures ETF, as reported by Coindesk, means that Volatility Shares will be the first to operate a leveraged crypto ETF in the United States. The prospectus filing reveals that the 2x Bitcoin Futures ETF is scheduled to commence operations on June 26, 2023. The filing also mentions that the ETF’s performance may correlate with the CME Bitcoin Futures Daily Roll Index.
BlackRock’s ETF Plans
This decision comes at a time when the price of Bitcoin has been on the rise in recent weeks, surpassing the $30,000 mark. The news of BlackRock’s ETF plans likely contributed to this price surge. However, despite the approval of a futures ETF, concerns remain regarding whether the SEC will grant approval for Bitcoin spot trading offerings, which would allow investors to trade actual Bitcoin rather than just futures contracts.
The SEC’s embrace of a leveraged Bitcoin futures ETF signifies a significant step forward in the regulatory acceptance of cryptocurrencies in the United States. As the cryptocurrency market continues to evolve, investors eagerly await further developments that could provide additional investment opportunities and promote mainstream adoption of digital assets.