Volatility Shares Trust to Debut a New Bitcoin Investment Vehicle

2023-06-24 05:58:10

Volatility Shares Trust plans to debut a new Bitcoin-focused investment product on the Cboe BZX Exchange.
The product has been listed under the ticker BITX and registered as the 2x Bitcoin Strategy ETF.
BITX shares are set to debut on June 27.
The Bitcoin investment vehicle’s registration statement “has not yet become effective.”

Volatility Shares Trust, a firm known for providing investors with exchange-traded funds (ETFs) linked to equity market volatility and cryptocurrencies, is set to debut a new investment vehicle that will provide investors with indirect exposure to the world’s largest cryptocurrency, Bitcoin (BTC). The product is scheduled to debut on June 27 but is pending approval from the United States Securities and Exchange Commission (SEC).

It is important to mention here that Volatility Shares Trust officially filed Form 8-A with the SEC on June 23. The SEC is known for gunning down multiple Bitcoin and crypto-related exchange-traded funds over the past few years. The filing also confirmed that an application to list the shares of the 2x Bitcoin Strategy ETF has been filed with and approved by the Cboe BZX Exchange.

The investment product has been listed under the ticker BITX and would offer leveraged exposure to Bitcoin corresponding to two times the daily performance of the S&P CME Bitcoin Futures Daily Roll Index. Bloomberg ETF expert Eric Balchunas noted that he did not think such an ETF’s approval was possible but added that this could be an early sign of the SEC lightening up on crypto assets.

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

The official website of Volatility Trust Shares noted that the plan for the investment product is to start trading on June 27 but added that the registration statement “has not yet become effective.”

Interestingly, in a separate filing of Form N-1A with the SEC for listing shares of the leveraged Bitcoin futures ETF on the CBOE BZX Exchange, it was revealed that neither the SEC nor the CFTC had “approved or disapproved these securities or passed upon the accuracy or adequacy of this prospectus.”

In a statement sent to a crypto-focused media outlet, a spokesperson from Volatility Shares Trust said:

“We cannot comment on what the SEC may or may not do. What we can say is that the registration statement is now effective, and, in accordance with SEC regulations, we are planning to list BITX for trading.”

As reported earlier by Bitnation, the SEC has rejected multiple Bitcoin spot ETFs, including Grayscale’s request for the conversion of its flagship product GBTC into a BTC spot ETF. Nevertheless, the investment management firm announced a new business arm named the Grayscale Funds Trust along with registration filings for three new crypto ETFs with the SEC amid growing tensions between the two entities

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