The first leveraged bitcoin futures exchange-traded fund became effective on Friday after not being rejected by the U.S. Securities and Exchange Commission.
The Volatility Shares 2x Bitcoin Strategy ETF, or BITX, is due to start trading on Tuesday, Stuart Barton, chief investment officer at Volatility Shares, said in an email. CoinDesk first reported the news.
BITX will look to provide two times the return of a bitcoin futures index on a daily basis.
Bitcoin futures contracts
The fund will not directly invest in bitcoin and instead “seeks to benefit from increases in the price of Bitcoin Futures Contracts,” according to the prospectus.
The SEC has approved a bitcoin futures ETF before, but it hasn't yet approved a spot fund. This past week firms including WisdomTree, Invesco and BlackRock all filed for spot bitcoin funds.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.