A company behind the provision of cryptocurrency-linked and other exchange-traded funds (ETFs) has filed with the US Securities and Exchange Commission (SEC) to list shares of a leveraged bitcoin futures ETF.
The Volatility Shares Trust filed a Form 8-A with the SEC on June 23, indicating that the company was preparing to launch an investment vehicle that the regulator might consider as a class of securities under its purview. The registration statement listed the Volatility Shares “2x Bitcoin Strategy ETF” under the ticker symbol BITX, which would provide leveraged exposure to Bitcoin (BTC) equal to twice the daily performance of the S&P CME Bitcoin Futures Daily Roll Index.
At the time of publication, the SEC had not specifically denied the crypto investment vehicle’s volatility share application — a leveraged BTC futures ETF would be the first of its kind in the United States. The Volatility Shares Trust’s website said it plans to start trading on June 27, but added that the registration statement “is not yet effective”.
A separate SEC Form N-1A for listing shares of the leveraged bitcoin futures ETF on the CBOE BZX Exchange states that neither the SEC nor the U.S. Commodity Futures Trading Commission “approves or disapproves these securities or the have assessed the accuracy or adequacy of such information”. Prospectus.” It is common for the SEC to reject many crypto-related ETF applications.
“We cannot comment on what the SEC may or may not do,” a spokesman for Volatility Shares told Cointelegraph. “What we can say is that the registration statement is now effective and we plan to list BITX for trading under SEC regulations.”
Related: BlackRock applies for spot bitcoin ETF – a first in the US, pending approval
Although the U.S. financial regulator has not approved a spot crypto ETF, starting in 2021 it will allow ETFs linked to BTC futures, including those from Valkyrie and ProShares. In May and June, respectively, Valkyrie filed with the SEC to list its own leveraged Bitcoin futures ETF and a spot BTC ETF.
The filing comes amid an SEC lawsuit against crypto exchanges Binance and Coinbase over alleged unregistered securities offerings. Some U.S. lawmakers have called for the removal of SEC Chairman Gary Gensler and his perceived “regulation by enforcement” approach to crypto firms and others.
Magazine: Gary Gensler’s Job in Jeopardy, BlackRock’s First Spot Bitcoin ETF, and Other News: Hodler’s Digest, May 11-17 June
Update (21 Jun at 21:14 UTC): This article has been updated to include a statement from Volatility Shares Trust.
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