Volatility Shares Trust aims for listing of leveraged Bitcoin futures ETF

A company behind providing cryptocurrency-linked and other exchange-traded funds (ETFs) has filed with the United States Securities and Exchange Commission (SEC) for listing shares of a leveraged Bitcoin futures ETF.

Volatility Shares Trust filed Form 8-A with the SEC on June 23, suggesting that the firm was preparing to launch an investment vehicle the regulator could consider a class of securities under its purview. The registration statement listed the Volatility Shares ‘2x Bitcoin Strategy ETF’, under the ticker symbol BITX, which offered leveraged exposure to Bitcoin (BTC) corresponding to two times the daily performance of the S&P CME Bitcoin Futures Daily Roll Index.

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

At the time of publication, the SEC had not explicitly denied the Volatility Shares application for the crypto investment vehicle — a leveraged BTC futures ETF would be the first of its kind in the United States. Volatility Shares Trust’s website stated it planned to start trading on June 27, but added the registration statement “has not yet become effective.”

A separate SEC Form N-1A filing for listing shares of the leveraged Bitcoin futures ETF on the CBOE BZX Exchange stated that neither the SEC nor the U.S. Commodity Futures Trading Commission had “approved or disapproved these securities or passed upon the accuracy or adequacy of this prospectus.” The SEC has a pattern of denying many crypto-linked ETF applications.

Related: BlackRock applies for spot Bitcoin ETF — a US first if approved

While the U.S. financial regulator has not approved any spot crypto ETF, it began allowing ETFs linked to BTC futures starting in 2021, including those from Valkyrie and ProShares. In May and June, respectively, Valkyrie applied with the SEC for listing its own leveraged Bitcoin futures ETF as well as a spot BTC ETF.

The filing came amid the SEC being entrenched in lawsuits against crypto exchanges Binance and Coinbase for alleged unregistered securities offerings. Some U.S. lawmakers have called for the removal of SEC chair Gary Gensler and his perceived “regulation by enforcement” approach to crypto firms and others.

Magazine: Gary Gensler’s job at risk, BlackRock’s first spot Bitcoin ETF and other news: Hodler’s Digest, June 11-17