Volatility Shares investment director Stuart Barton told the Securities and Exchange Commission (SEC) approved an application for the BITX fund on Friday. The launch should take place as early as next Tuesday, June 27.
As in other margin products, a buyer of 0.5 BTC worth of fund shares will have a profit or loss as with 1 BTC. In this case, of course, there will be no real investment in bitcoin. The fund’s share price will match the CME Bitcoin Futures Daily Roll index. Given the marginal nature of the fund, the company warns:
“The fund presents different risks, which may differ from those of other types of funds. It may not be suitable for all investors and is designed for experienced traders who understand the consequences of investing in margin products. Potentially, an investor could lose all of their money in just one day.
Recall that there are already several bitcoin futures ETFs in the U.S., but no margin ones yet. Also, at this time, the SEC has not approved any application to launch a spot ETF for bitcoin, and the regulator has five such applications pending, including one from BlackRock.
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