SEC approves leveraged Bitcoin ETF

The US Securities and Exchange Commission (SEC) made an unexpected move on Friday by granting approval for the launch of the Volatility Shares Trust 2x Bitcoin Strategy ETF. This decision had a notable impact on the crypto market, with the price of Bitcoin surging, briefly reaching $31,430 before retracing.

The Volatility Shares Trust 2x Bitcoin Strategy ETF is designed to provide investors with double the excess returns of the S&P CME Bitcoin Futures daily Roll Index. Scheduled to be launched next week, this leveraged product opens up new possibilities for both retail and institutional investors.

This approval has drawn attention due to the SEC’s previous rejections of spot Bitcoin ETF filings, raising questions about the regulatory body’s stance on Bitcoin-related products. The approval of a leveraged Bitcoin ETF indicates a potential shift in the SEC’s perspective, offering a glimpse of increased acceptance and recognition of digital assets as a mainstream asset class.

While concerns over the volatility and risks associated with Bitcoin investments remain, proponents of the 2x Bitcoin Strategy ETF argue that the approval could attract institutional investors and result in a steady inflow of capital. The entry of institutional players into the cryptocurrency market is anticipated to provide stability and contribute to the overall maturation of the industry.