First leveraged Bitcoin futures ETF opens for trading on CBOE

The Volatility Shares 2x Bitcoin Strategy ETF (BITX) opened for trading connected the Chicago Board Options Exchange (CBOE) connected June 27.

Chang Kim, COO astatine Volatility Shares, said:

“There’s a large assemblage that’s already retired determination for leveraged-type products, and to benignant of wed that with the intrinsic involvement that determination is successful each things crypto — that’s wherefore we consciousness that there’s a beauteous bully assemblage retired determination for this.”

Several Bitcoin futures ETFs are disposable successful the U.S. market, including the ProShares Bitcoin Strategy ETF (BITO) and the VanEck Bitcoin Strategy ETF (XBTF). However, BITX is the archetypal to connection leveraged trading.

Leverage enables traders to unfastened positions worthy much than the wealth deposited – giving greater vulnerability to the underlying asset’s terms movements. The quality betwixt the worth of the commercialized and the trader’s deposit (margin) is loaned by the level provider.

The Commodities Futures Trading Commission cautioned investors astir absorption fees and different expenses connected Bitcoin futures ETF – adding that disclosure and terms risks are besides factors to beryllium wary about.

Flood of spot Bitcoin ETF applications

BlackRock filed for a spot Bitcoin ETF connected June 15, triggering a question of different plus managers pursuing suit, including WisdomTree and Invesco.

The Securities Exchange Commission has not approved a spot Bitcoin ETF application, contempt astir 30 applications submitted since 2013. The bureau has denied applications implicit concerns astir the “opaque” spot marketplace and manipulative terms practices.

Spot ETFs disagree from futures by pricing based connected the spot market, usually a mean mean spot terms from respective exchanges. While futures ETFs trust connected pricing based connected the futures price. In addition, the second is typically settled successful cash, whereas a spot Bitcoin ETF would let colony successful BTC.

The station First leveraged Bitcoin futures ETF opens for trading connected CBOE appeared archetypal connected CryptoSlate.