BITX is a 2x Leveraged ETF, so investors can grow their profits twice as fast as they would without leverage.

The first leveraged Bitcoin futures exchange-traded fund (ETF) has received approval from the U.S. Securities and Exchange Commission (SEC). The ETF, Volatility Shares 2x Bitcoin Strategy (BITX), will launch on the Chicago Board Options Exchange (CBOE) BZX exchange on Tuesday, June 27.

ETFs can be traded on exchanges just like stocks, and prices often fluctuate within the same day as they are bought and sold. There are two main types of Bitcoin ETFs: Bitcoin futures and Bitcoin spot prices. The futures ETF approval will allow investors to touch Bitcoin without investing in physical assets.

While many in the cryptocurrency industry are happy with the introduction, others are concerned about the order in which they are awarded. They wonder why leveraged futures products like BITX are being introduced before traditional spot ETFs.

ETF Store president Nate Gerasi is one of those who think spot ETFs should have been prioritized. In announcing his own take on the announcement, he tweeted, commenting:

Since BITX is a 2x Leveraged ETF, investors can easily see their profits grow twice as fast as they would without leverage. On the other hand, he also doubles the chance of losing money in adverse market conditions. So while you get more profit, you also have a higher chance of loss.

In expressing its views on the risks associated with trading leveraged products, the SEC said: said Or:

“The Fund is subject to risks that differ from other types of funds. This Fund is not suitable for all investors, and daily leveraged (2x) investment results, including the impact of compounding interest on the Fund’s performance, may vary. should be used only by knowledgeable investors who understand the results sought.”

approval of Bitx It’s Ggood news for Cryptocurrency Iindustry

and of the SEC various lawsuits Against Cryptocurrency companies, include Recent file a lawsuit of binance and coinbase, one may conclude that is of the SEC chairman, Gary Gensler critical Cryptocurrency. However, recent updates may offer another perspective on how regulators view cryptocurrencies.

Bloomberg Senior ETF Analyst Eric Balchunas said: Tweetsays:

“The 2x Bitcoin ETF $BITX has gone into effect and will go on sale on Tuesday. I believe they withdrew previous 2x applicants after BITO’s launch.”

The approval could affect how investors perceive the industry, attracting more investors and increasing market volatility. While it may be too early to conclude how the SEC views cryptocurrencies, this news is a move in the right direction for the crypto industry.

BTC Price Soars After BITX News Release

The news impacted the price of Bitcoin, which surged to $31,450 shortly after its release on Friday, June 23rd. This number represents the highest reached in a year. It also rose 5% from yesterday’s close of $29,890. The sudden rise in price shows that investors are confident in the cryptocurrency and that the market has received the news well.


Bitcoin News, Cryptocurrency News, Funds & ETFs, Market News, News

Temitope Oratunzi

Temitope is a writer with over 4 years of writing experience in various niches. He has a special interest in the Fintech and Blockchain areas and enjoys writing articles in those areas. He has a Bachelor’s and Master’s degree in Linguistics. When not writing, he spends his time trading forex and playing video games.

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