Amid lawsuits against crypto exchanges, the SEC has approved Volatity Shares’ ETF application. The leveraged Bitcoin ETF “2x Bitcoin Strategy ETF” will likely debut this month.
SEC approves Volatity Shares’ application for leveraged Bitcoin ETF
Volatility Shares Trust filed an application ETF with the SEC on June 23 with Form 8-A. With this move, the company is preparing to launch a securities-class investment vehicle that can be overseen by the regulator. The registration statement listed the “Volatility Shares 2x Bitcoin Strategy ETF” with the symbol BITX. This ETF will offer leveraged positions in Bitcoin, which is twice the daily performance of the S&P CME Bitcoin Futures Daily Roll Index.
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
June 27 could be the debut date for the ETF
The launch of shares of the Bitcoin investment vehicle will potentially take place on June 27. However, it should be noted that the SEC tends to reject many crypto-related ETF applications. So far, the SEC has not publicly rejected Volatility Shares’ application for a crypto investment vehicle. The leveraged Bitcoin futures ETF will therefore be a first in the US. The website of the Volatility Shares Trust states that the ETF may exit on June 27. However, the registration statement also includes the statement that it has not yet entered into force.
Meanwhile, a separate SEC Form N-1A filing has also been filed to list shares of the leveraged Bitcoin futures ETF on the CBOE BZX Exchange. However, neither the SEC nor the CFTC has given a clear confirmation as of now.
A Volatility Shares spokesperson said, “We cannot comment on what the SEC will do. What we can say is that the registration statement is now valid. In addition, we have planned the listing of BITX for trading in accordance with SEC regulations.”
Ranked on BlackRock, WisdomTree, Valkyrie and Invesco
The US regulator has disallowed a number of spot crypto ETFs since last year. Despite this, companies like Valkyrie and ProShares started allowing BTC ETFs as of 2021. In May and June, Valkyrie filed with the SEC for its leveraged ETFs.
These filings come in the middle of the SEC’s lawsuits for unregistered securities offerings against crypto exchanges like Binance and Coinbase. However, companies like BlackRock, WisdomTree, Valkyrie, and Invesco are waiting in line for ETF approval. cryptocoin.comAs we reported, all applications were received during the week of June 19, when SEC cases were on the agenda.
WisdomTree has filed for spot bitcoin ETF h/t @NateGeraci pic.twitter.com/JwXj8rTs2X
— Eric Balchunas (@EricBalchunas) June 20, 2023
Meanwhile, Santiment data shows that the latest rally coincided with BlackRock’s ETF filing. The news that surfaced last week has created hype in favor of crypto on social media. Bitcoin then surpassed the $31,000 resistance on June 23.
