The Volatility Shares 2x Bitcoin Strategy ETF (BITX) is scheduled to launch on the Chicago Board Options (CBOE) BZX Exchange next Tuesday, June 27th.
The U.S. Securities and Exchange Commission (SEC) has approved the first leveraged Bitcoin futures exchange-traded fund (ETF) on Friday. Volatility Shares 2x Bitcoin Strategy ETF (BITX) is scheduled to launch on the Chicago Board Options (CBOE) BZX Exchange next Tuesday, June 27.
According to the SEC filing, BITX âseeks investment results that correspond to two times (2x) the return of the Chicago Mercantile Exchange (CME) Bitcoin Futures Daily Roll Index.â
An ETF, or exchange-traded fund, bundles securities like stocks and commodities. Investors can buy shares of an ETF to gain exposure to those securities without owning them directly. In the case of Bitcoin ETFs, there have been two main types: Bitcoin futures and Bitcoin spot.
The BITX fund will be a leveraged ETF. Leveraged funds use debt or financial derivativesâin this case, Bitcoin futuresâas leverage to amplify the returns of a benchmark index. That leverage can mean short-term gains for investors, but it can also lead to big losses.