First leveraged Bitcoin futures ETF opens for trading on CBOE

The Volatility Shares 2x Bitcoin Strategy ETF (BITX) has launched on the Chicago Board Options Exchange (CBOE). June 27.

Volatility Shares COO Chang Kim said:

“Leveraged products already have a large audience and we are trying to combine that with the intrinsic interest that exists in all things cryptocurrency, so the product has a pretty good audience. we feel.”

ProShares Bitcoin Strategy ETF (Bito) and VanEck Bitcoin Strategy ETF (XBTFMore). However, BITX is the first to offer leveraged trading.

Leverage allows traders to open positions worth more than they have deposited, thus increasing their exposure to price fluctuations in the underlying asset. The difference between the traded amount and the trader’s margin is loaned by the platform provider.

of Commodity Futures Trading Commission He warned investors about management fees and other costs of Bitcoin futures ETFs, adding that disclosure and price risk are also factors to watch out for.

Bitcoin ETF Spot Applications Flooded

BlackRock filed for a spot Bitcoin ETF on June 15, sparking a wave of other asset managers to follow suit, including WisdomTree and Invesco.

The Securities and Exchange Commission has not approved spot applications for Bitcoin ETFs. 30 Applications submitted after 2013. agency is rejected The application was filed over concerns about an “opaque” spot market and manipulative pricing practices.

Spot ETFs differ from futures in that they are priced based on the spot market, usually the average spot price of multiple exchanges. Futures ETFs, on the other hand, rely on pricing based on futures prices. Furthermore, the Spot Bitcoin ETF allows settlement in BTC, whereas the latter is usually settled in cash.

The post The first Leveraged Bitcoin Futures ETF to start trading on CBOE appeared first on CryptoSlate.

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