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Bitcoin rose to above $31,450 on Friday, its highest level since June 2022.
BTC price spiked to the year-high level after the SEC allowed the Volatility Shares 2x Bitcoin Strategy ETF, or BITX.
This is the first leveraged Bitcoin Futures ETF in the US and comes after this week’s BlackRock-fueled bullish sentiment for the crypto market.
Bitcoin smashed past the $31,000 level on Friday afternoon as the market reacted to the latest news about the US market’s first leveraged Futures Bitcoin exchange traded fund (ETF).
The upside pushed BTC price to highs of $31,458 on crypto exchange Bitstamp, with the flagship cryptocurrency’s price setting a new year-to-date high and its highest level since June 2022. BTC traded at $31,170 at the time of writing, about 4% higher in the past 24 hours but an impressive 87% up YTD.
SEC approves first leveraged Futures Bitcoin ETF
On Friday, June 23, the US market entered a new chapter in crypto investing when the first leveraged Bitcoin Futures ETF became effective. The Volatility Shares 2x Bitcoin Strategy ETF, or BITX, will begin trading on Tuesday 27 June and will allow its investors an exposure to Bitcoin with daily returns.
BREAKING: 🇺🇸 SEC approves the first Leveraged #Bitcoin Futures ETF to start trading on Tuesday.
— Bitcoin Archive (@BTC_Archive) June 23, 2023
Instead of investing directly in Bitcoin, BITX will “seek to benefit from increases in the price of Bitcoin Futures Contracts,” per details of the Fund in the prospectus filed with the SEC. The 2x Bitcoin Strategy ETF will align with the CME Bitcoin Futures Daily Roll Index.
Bitcoin has led the market higher over the past week or so, riding on the bullish sentiment triggered by $9 trillion asset manager BlackRock’s filing for a spot Bitcoin ETF. BlackRock has a very high rate of success with ETF applications, the reason for the market’s optimism.
💡 But why is this important? Unlike the Bitcoin futures ETF approved in 2021, a spot ETF would buy actual Bitcoin instead of derivative contracts. This could draw in traditional investors and fuel Bitcoin’s price.
— IntoTheBlock (@intotheblock) June 23, 2023
Indeed, the asset manager’s filing paved way for a frenzy of spot ETF applications from several other Wall Street giants and global financial institutions. With BTC price in bullish momentum, its likely the market could see many more mega moves by smart money.
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