SEC's reaction after Bitcoin breaks 31,000
Volatility Shares' 2x leveraged Bitcoin futures ETF (BITX) was cleared by the SEC on Friday, making it the first leveraged cryptocurrency ETF in the US
ETF and will open for trading as soon as next Tuesday.
Stuart Barton, chief investment officer at Volatility Shares, told media outlet Coindesk that the regulator did not reject his application for a 2x leveraged bitcoin futures ETF and was "excited about virtual currencies becoming ETFs".
The 2x leveraged ETF would allow clients to invest as little as half the value of their bitcoin to get the value of their entire bitcoin investment, and the prospectus states that it would be priced against a daily rolling index of CME bitcoin futures.
Bitcoin's price broke above $31,000 at midnight following the news, a one-year high, and has risen above the important $30,000 level earlier this week, led by the fact that a number of large traditional investment firms, including BlackRock, have filed applications with the SEC for a spot bitcoin ETF. There are already several futures ETFs available in the US, but the SEC has been blocking the listing of a spot product.
ETF and will open for trading as soon as next Tuesday.
Stuart Barton, chief investment officer at Volatility Shares, told media outlet Coindesk that the regulator did not reject his application for a 2x leveraged bitcoin futures ETF and was "excited about virtual currencies becoming ETFs".
The 2x leveraged ETF would allow clients to invest as little as half the value of their bitcoin to get the value of their entire bitcoin investment, and the prospectus states that it would be priced against a daily rolling index of CME bitcoin futures.
Bitcoin's price broke above $31,000 at midnight following the news, a one-year high, and has risen above the important $30,000 level earlier this week, led by the fact that a number of large traditional investment firms, including BlackRock, have filed applications with the SEC for a spot bitcoin ETF. There are already several futures ETFs available in the US, but the SEC has been blocking the listing of a spot product.
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