Bitcoin surged to a new yearly high of $31,458 on Friday after the US Securities and Exchange Commission (SEC) approved the first leveraged Bitcoin Futures ETF. This comes on the back of bullish sentiment in the crypto market driven by the news of BlackRock’s filing for a spot Bitcoin ETF.
The Volatility Shares 2x Bitcoin Strategy ETF, or BITX, which will start trading on Tuesday, June 27, will give investors an exposure to Bitcoin with daily returns. BITX will be aligned with the CME Bitcoin Futures Daily Roll Index and will seek to benefit from increases in the price of Bitcoin Futures Contracts, per the Fund’s prospectus filed with the SEC.
Analytics platform IntoTheBlock noted that a spot ETF would draw in traditional investors and fuel Bitcoin’s price. This would be different from the Bitcoin Futures ETF approved in 2021 which bought derivative contracts instead.
The positive news from BlackRock and the SEC has pushed BTC price to its highest level since June 2022. At the time of writing, the flagship cryptocurrency was trading at $31,170 – up 4% in the past 24 hours and 87% up YTD.
It looks like the market could see many more mega moves with Bitcoin leading the charge as smart money enters the crypto space.
