Volatility Shares has launched the 2x Bitcoin Strategy ETF (BITX) on the CBOE BZX Exchange. BITX is the first U.S.-based ETF to offer leveraged long exposure to the cryptocurrency futures market.
BITX doesn’t invest directly in bitcoin. Instead, it seeks to benefit from increases in the price of Bitcoin Futures Contracts for a single day.
BITX provides leveraged bitcoin-linked exposure and may benefit from increases in the price of bitcoin. It seeks to provide daily investment results, before fees and expenses, that correspond to 2x the S&P CME Bitcoin Futures Daily Roll Index’s performance for a single day.
The index is designed to measure the performance of the CME Bitcoin Futures market. It’s rebalanced daily between the front contract and the next month’s contract.
“Bitcoin has recovered sharply this year reigniting investor interest,” said Todd Rosenbluth, head of research at VettaFi. “While there are existing futures-based ETFs, some investors might want to tactically take on additional risk in order to obtain higher reward.”
Asset managers have been looking to launch a spot bitcoin ETF for years (including most recently BlackRock). But so far, the SEC has not given the green light. Recently, the ETF industry has debated whether the regulatory environment has shifted.
“That’s what makes this fund compelling to track,” Rosenbluth added.
BITX carries an expense ratio of 1.85%.
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