The SEC has finally granted approval to the first-ever “Leveraged Bitcoin Futures ETF.” This new investment vehicle provides investors with the ability to gain leveraged exposure to Bitcoin futures contracts, allowing them to potentially earn more significant returns.
Revolutionizing Investment: SEC Approves First Leveraged Bitcoin Futures ETF:
On Monday morning in Asia, Bitcoin fell but continued to trade over the US$30,000 mark, while nearly every other of the top ten non-stablecoin cryptocurrency increased. The advances come after several conventional financial organizations expressed enthusiasm for developing exchange-traded funds (ETFs) tied to cryptocurrencies, and on Friday, the US markets authority cleared the first scaled Bitcoin futures ETFs in the nation.
This time around, the SEC has given Volatility Shares’ 2x Bitcoin Strategy ETF its blessing. A double-leveraged exchange traded fund (ETF) will be used to manage Bitcoin (BTC) futures. The S&P CME Bitcoin Futures Daily Roll Index will serve as the ETF’s secondary benchmark.
Some of the Prominent Bitcoin ETF Applications That Are Currently Active:
With the biggest asset management in the world competing, there is a greater likelihood than ever that the first Bitcoin ETF will be approved. BlackRock is one of the most important financial firms in the world, managing client assets of $9.5 trillion. More than 400 US ETFs have been launched, according to the giant. However, acceptance is not assured. After all, approving a spot Bitcoin ETF would represent the SEC’s defeat in its conflict with the cryptocurrency industry.
“Having a 2x scaled Bitcoin futures ETF trading on US platforms while [the SEC] is suing Grayscale and preventing any other issuer from attempting to create a Bitcoin spot ETF seems absurd at first sight. “
ETF analyst at Bloomberg Intelligence.
Now it has come up for consideration that the acceptance of the first weighted Bitcoin futures ETF in the United States could be an initial move towards handling Bitcoin spot ETFs, which are yet to be licenced.
Asset administrator WisdomTree, located in New York, has previous experience managing a Bitcoin ETF; it debuted one on Switzerland’s SIX stock exchange back in 2019. In March 2021, it joined the group of companies vying to launch a U.S. Bitcoin ETF by submitting an S-1 to the SEC, proposing the listing of units of the WisdomTree Bitcoin Trust on the Cboe bZx Exchange using the ticker symbol BTCW.
After that, the SEC delayed, postponed, and then postponed again, initially asking for public input on the idea before declaring that it needed more time to evaluate the “issues raised” in response letter.
A new proposal was submitted by WisdomTree in the middle of 2023, not long after BlackRock.