SEC Approves First Leveraged Bitcoin Futures ETF

By Kevin • June 23, 2023 11:03 pm • Comments

The crypto industry has just reached a new milestone as it was reported that the SEC has just approved its first leveraged Bitcoin Futures ETF.

This has never been done before as all previous Bitcoin futures ETFs were not leveraged which means this gives another financial instrument for investors to use to get crypto exposure.

It is expected that it will begin trading next week on Tuesday and many expect a new inflow of capital to go into BTC as a result of it.

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This may then result on more bullish momentum for Bitcoin as the price of BTC has recently surged passed the $30k mark.

There is also major push from large asset managers such as BlackRock to finally get spot Bitcoin ETFs finally approved.

Watcher.guru reports:

The registered futures ETF comes as a result of similar developments that have taken place in the sector. Specifically, BlackRock has set in motion a plan for Bitcoin Spot ETFs.

Conversely, the Volaitlty Shares futures ETF has seen approval, and it is primed to go live in the next week.

The cryptocurrency sector in the United States has seen its fair share of concern in recent weeks.

The SEC has firmly embraced enforcement against two of the largest cryptocurrency exchanges in the market, Coinbase and Binance. However, they have now green-lit the arrival of a new crypto offering in the country.

Specifically, the SEC has approved its first leveraged Bitcoin futures ETF, according to a new report from Coindesk. Indeed, the approval has seen Volatility Shares set to begin operations on the first leveraged crypto ETF in the United States.

The new filing report indicates that the new leveraged Bitcoin Futures ETF will begin trading on June 26 of next week.

What made the SEC approve this type of ETF is still unknown as the SEC has had a history of rejection ETF products related to crypto.

With that being said, it seems that the amount of demand for crypto financial products has increased to a point where the SEC has no choice but to approve.

It is quite strange though that a leveraged futures Bitcoin ETF was able to launch before a spot Bitcoin ETF.

Many investors commented on Twitter that this did not make sense, but it was still good news as it indicates that the SEC may be loosening its grip on crypto in some aspects.

DeCrypto.co reports:

Bitcoin continues its rally, touching $31,000 today, with a 3.4% gain.

Approving BITX breathes some fresh air into the digital asset industry, after the SEC sued two of the largest crypto exchanges earlier this month. The regulatory agency’s head, Gary Gensler, has proved to be a staunch detractor of cryptocurrencies.

With BlackRock applying for a Bitcoin ETF earlier this week, could this be a sign of the tides turning for the SEC’s turbulent relationship with crypto?

It might be a bit early, but the news is no doubt encouraging for investors.

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