- Bitcoin rose above $31,450 on Friday, the highest level since June 2022.
- BTC price spiked to annual high after SEC allowed 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-driven bullish sentiment for the crypto market.
Bitcoin broke past the $31,000 level on Friday afternoon as the market reacted to recent news about the US market’s first leveraged Futures Bitcoin Exchange Traded Fund (ETF).
The upside pushed the BTC price to highs of $31,458 on the Bitstamp crypto exchange, with the flagship cryptocurrency’s price setting a new year-to-date and its highest level since June 2022. BTC was trading at $31,170 at the time of writing, about 4% higher in recent 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. Volatility Shares 2x Bitcoin Strategy ETF, or BITXwill begin trading on Tuesday, June 27 and will allow its investors exposure to Bitcoin with daily returns.
BREAKING: 🇺🇸 SEC approves the first Leveraged #Bitcoin The futures ETF begins trading on Tuesday.
— Bitcoin Archive (@BTC_Archive) 23 June 2023
Instead of investing directly in Bitcoin, BITX will “seek to take advantage of price increases in Bitcoin Futures contracts,” according to information about the fund in the prospectus is archived with the SEC. The 2x Bitcoin Strategy ETF will be aligned to the CME Bitcoin Futures Daily Roll Index.
Bitcoin has led the market higher over the past week or so, riding the bullish sentiment sparked by $9 trillion asset manager BlackRock’s filings for a spot Bitcoin ETF. BlackRock has a very high success rate with ETF applications, the reason for the market’s optimism.
🔎 #Blackrock, the world's largest asset manager (~$9T in assets) submitted a spot ETF for Bitcoin. With a staggering approval rate of 575 out of 576 ETF applications, their backing renews hope for a Bitcoin spot ETF.
— IntoTheBlock (@intotheblock) June 23, 2023
Indeed, the asset manager’s filing paved the way for a frenzy of spot ETF filings from several other Wall Street giants and global financial institutions. With the BTC price in bullish momentum, it is likely that the market could see many more smart money mega moves.