Amidst regulatory unease within the United States’ cryptocurrency realm, an encouraging development surfaces. The U.S. Securities and Exchange Commission (SEC) has stamped its approval on the country’s first leveraged Bitcoin Futures ETF (Exchange-Traded Fund), as per a recent Coindesk report.
First-of-its-Kind Offering
Volatility Shares, the proposer of this unique ETF, has now opened a path previously unexplored in the United States. Trading of this leveraged futures ETF is slated to kickstart this coming Tuesday. This innovative ETF approval comes on the back of similar ventures taking root in the sector. Notably, financial giant BlackRock has ignited plans for Bitcoin Spot ETFs. Despite the growing interest in such offerings, Volatility Shares is the first to secure approval and set the stage for trading to begin next week.
Green Light Amid Regulatory Scrutiny
Recent weeks have seen the U.S. crypto space shadowed by regulatory concerns. The SEC has initiated enforcement actions against two major players in the crypto market – Coinbase and Binance. Now, the regulatory body has signaled a new phase by giving a green light to a distinct crypto offering.
The SEC-approved ETF from Volatility Shares, as per the report, will be the first leveraged crypto ETF to operate in the United States. A document filing confirms that this 2x Bitcoin Futures ETF is set to spring into action on June 26, 2023. Furthermore, the ETF could be associated with the CME Bitcoin Futures Daily Roll Index, as indicated in the filing.
Implications for Bitcoin and Crypto Market
This encouraging regulatory development coincides with Bitcoin’s recent rally, which took its price above the $31,000 mark. This price surge possibly benefited from news surrounding BlackRock’s ETF aspirations. However, even with the futures ETF approval, questions linger around the potential endorsement of Bitcoin spot trading offerings by the SEC.
