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News/BITX’s Historic Debut: First Leveraged Bitcoin ETF Hits $4.2 Million in Trading Volume

BITX’s Historic Debut: First Leveraged Bitcoin ETF Hits $4.2 Million in Trading Volume

Jun 28 2023

last year2 minutes read

First Leveraged Bitcoin ETF (BITX) in U.S. Sails High Since its Introduction

Written by Van

Welcoming a new player in the crypto investment field, the Volatility Shares 2x Bitcoin Strategy exchange-traded fund (BITX) marks the birth of the first leveraged Bitcoin ETF in the U.S. Offering a unique financial instrument, BITX has carved out its place in the trading market swiftly—the trading volume signifying approximately $4.2 million since its inception.


A Detailed Run-Down of BITX's Initial Trading Surge

No sooner had the trading curtain risen than BITX made its presence apparent. In a whisker of time—precisely the first quarter of an hour, nearly $500,000 worth of BITX shares changed hands. As the day progressed, this nascent ETF seemed to build momentum that left market spectators on their toes. 

Currently, a single share of BITX rests at an attractive price of approximately $15.48, having relished a peak value of $15.90—a firm 2% upturn since the commencement of its trading journey. 


U.S. SEC's Role in BITX's Launch

The birth of BITX carried significance far beyond its monetary success; it marked a landmark decision by the U.S. Securities and Exchange Commission (SEC) which allowed this ETF to breathe its life on a trading platform from a Friday that rewrote crypto investment history. Its trading debut unfurled on the following Tuesday to spontaneous marketplace acclaim. 


A Quick Peek into the World of Crypto ETFs in the U.S.

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The presence of futures-based ETF products in the U.S. is not a novel concept; however, the consistent reluctance of the SEC to greenlight the debut of spot products continues to raise eyebrows. The journey of other leveraged bitcoin futures products towards receiving approvals met with stumbling roadblocks periodically, adding a twist to the BITX success story. 

Parallel to BITX, the ProShares' BITO—another ETF backed by Bitcoin futures—shone on its first trading day in 2021, accumulating approximately $1 billion in trading volume and nestling around $570 million worth of assets under its wing.


BITX and its Impact on the Crypto Investment Scene

The onset of a leveraged Bitcoin ETF such as BITX in the U.S. trading arena has resulted in a wave of new investment flow—a testament to the growing market craving for instruments providing cryptocurrency exposure. Though navigating through a sea of regulatory puzzles, these ETFs' approval has nudged the propensity of traditional financial markets towards embracing crypto investment opportunities.


The Forthcoming Trading Era with BITX

Last week, Volatility Shares, the entity behind BITX, announced that this ETF would pioneer as the first leveraged crypto ETF accessible in the United States. This sanction from the U.S. Securities and Exchange Commission (SEC) on June 23 cleared the path for BITX's grand entrance today.

Corresponding with the CME Bitcoin Futures Daily Roll Index, BITX provides an investing landscape grounded on CME Bitcoin Futures prices. This new trading landscape introduces an exciting twist for customers, allowing them to secure Bitcoin exposure through leveraged 2x ETF by investing just half of the Bitcoin's value. 


BlackRock and The Quest for Spot Bitcoin ETFs

The endorsement of the leveraged ETF witnesses a backdrop narrating attempts of mainstream traditional investment firms like BlackRock and their unfulfilled pursuits for launching spot Bitcoin ETFs with the SEC.


SEC's Stance on Crypto ETFs 

Though Futures-based ETF products exist in the trading universe, spot products face active disappointment at the SEC's doorstep. The previous journey for launching leveraged Bitcoin futures products encountered unsuccessful attempts at gaining necessary authorization. 


FAQs 

Q: How has the trading volume of BITX been since it debuted?

A: The Volatility Shares 2x Bitcoin Strategy ETF (BITX) has seen around $4.2 million in trading volume since its launch.

Q: What makes BITX appealing to future investors?

A: The unique structure of BITX allows investors to gain Bitcoin exposure by only putting up half the value of the Bitcoin.

Q: Why does BITX's launch significant?

A: The approval of BITX signifies a transformative shift in the traditional financial market toward accommodating cryptocurrency investments.

Q: What role has the SEC played in ETFs?

A: The U.S. Securities and Exchange Commission (SEC) has consistently allowed futures-based ETFs while blockading the launch of spot products.

Q: How was BITX's performance compared to BITO?

A: On its first day, BITX saw $500,000 worth of shares traded in the first fifteen minutes. In comparison, BITO had approximately $1 billion in trading volume on its first day of trading.


A New Era Dawns with BITX's Arrival

Overcoming regulatory hurdles, Volatility Shares' 2x Bitcoin Strategy ETF (BITX) garnered applause when it bagged approval from the SEC, cementing its place as the first leveraged crypto ETF in the United States. This unprecedented development in the ETF market for digital assets symbolizes the expanding interest in cryptocurrency investments. 

This article has been refined and enhanced by ChatGPT.

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