Volatility Shares Trust Aims for Listing of Leveraged Bitcoin Futures ETF

A leading provider of cryptocurrency-linked and other exchange-traded funds (ETFs) has submitted a filing with the United States Securities and Exchange Commission (SEC) to list shares of a leveraged Bitcoin futures ETF.

Volatility Shares Trust recently filed Form 8-A with the SEC on June 23, indicating their intention to launch an investment vehicle that falls under the SEC’s regulatory scope. The registration statement showcases the Volatility Shares ‘2x Bitcoin Strategy ETF’, identified by the ticker symbol BITX. This ETF provides leveraged exposure to Bitcoin (BTC), delivering twice the daily performance of the S&P CME Bitcoin Futures Daily Roll Index.

The 2x bitcoin ETF $BITX has become effective, scheduled to launch Tuesday. I was doubtful it would happen but looks like it’s official. Could this be early sign of SEC lightening up? After $BITO launch I believe they made earlier 2x filers withdraw pic.twitter.com/XXxSt9xypu

— Eric Balchunas (@EricBalchunas) June 23, 2023

As of now, the SEC has not explicitly rejected the Volatility Shares application for the leveraged BTC futures ETF, which would be the first product of its kind in the United States. Volatility Shares Trust’s website states that trading is scheduled to commence on June 27, but clarifies that the registration statement “has not yet become effective.”

A separate filing in SEC Form N-1A for listing shares of the leveraged Bitcoin futures ETF on the CBOE BZX Exchange indicates that neither the SEC nor the U.S. Commodity Futures Trading Commission have “approved or disapproved these securities or passed upon the accuracy or adequacy of this prospectus.” It is worth noting that the SEC has habitually rejected numerous crypto-linked ETF applications in the past.

Related: BlackRock applies for spot Bitcoin ETF — a US first if approved

Although the U.S. financial regulator has not granted approval for any spot crypto ETF, it did begin permitting ETFs based on BTC futures in 2021, including those offered by Valkyrie and ProShares. In May and June, Valkyrie submitted applications with the SEC to list its own leveraged Bitcoin futures ETF, as well as a spot BTC ETF.

This filing comes at a time when the SEC is currently embroiled in lawsuits against major crypto exchanges Binance and Coinbase, accusing them of conducting unregistered securities offerings. Some lawmakers in the United States have called for the removal of SEC chair Gary Gensler, citing concerns over his perceived “regulation by enforcement” approach towards crypto companies and others in the industry.

Magazine: Gary Gensler’s job at risk, BlackRock’s first spot Bitcoin ETF and other news: Hodler’s Digest, June 11-17