The US Securities and Exchange Commission (SEC) has given the green light to the first-ever leveraged Bitcoin Futures ETF, paving the way for potential future approval of a spot Bitcoin ETF. This news has boosted the Bitcoin price, but the market is eagerly awaiting a decision on Bitcoin spot ETF applications filed by other major industry players.
In a significant step forward for the adoption of crypto ETFs, the US Securities and Exchange Commission (SEC) has approved the very first leveraged Bitcoin Futures ETF in the country. According to documents available on the SEC website, trading of the 2x Bitcoin Strategy ETF (BITX), offered by the Volatility Shares fund, will begin this Tuesday, June 27, 2023 on the Chicago Board Options (CBOE) BZX Exchange.
Acceleration of the Bitcoin ETF approval process!
This approval of the Bitcoin Futures ETF points to the possibility of future approval of a Bitcoin Spot ETF, which would enable investors to trade actual bitcoins rather than futures contracts. Indeed, investment giant BlackRock has just filed an application to this effect, raising considerable expectations in the industry.
The announcement of the launch of this Bitcoin Futures ETF had an immediate impact on the Bitcoin price, propelling the crypto above the $31,000 mark on June 23. This echoes the similar positive effect seen when BlackRock filed its application for a Bitcoin Spot ETF, boosting the price of Bitcoin from $27,000 to $30,000 in record time.
In addition to BlackRock, other major market players such as Valkyrie, WisdomTree and Invesco have also submitted applications to launch spot Bitcoin ETFs. However, it will still be some time before we hear back from the SEC, as the approval process can take several months.
It is also possible that the SEC will decide to accelerate the approval process for Bitcoin ETFs filed by BlackRock and other competing funds, in a bid to meet growing investor demand for crypto-currency exposure.
The launch of Volatility Shares’ Bitcoin Futures ETF, scheduled for this Tuesday, June 27, 2023, is being closely scrutinized by the market. However, industry players are mainly awaiting the approval of a spot Bitcoin ETF, likely to attract billions more into Bitcoin and cryptos, opening up new opportunities for investors worldwide.