BTC reaches $31k with SEC approval of first leveraged Futures Bitcoin ETF.

  • Bitcoin’s price rose above $31,450 on Friday, reaching its highest level since June 2022.
  • The price of BTC spiked to a yearly high after the SEC approved the Volatility Shares 2x Bitcoin Strategy ETF, or BITX.
  • This is the first leveraged Bitcoin Futures ETF in the US, and it comes after the bullish sentiment for the crypto market fueled by BlackRock this week.

On Friday afternoon, Bitcoin’s price surged past the $31,000 level as the market reacted to the latest news about the US market’s first leveraged Futures Bitcoin exchange-traded fund (ETF).

The upside pushed the BTC price to highs of $31,458 on crypto exchange Bitstamp, with the flagship cryptocurrency’s price setting a new year-to-date high and its highest level since June 2022. At the time of writing, BTC traded at $31,170, about 4% higher in the past 24 hours but an impressive 87% up YTD.

SEC approves the first leveraged Futures Bitcoin ETF

On Friday, June 23, the US market entered a new chapter in crypto investing when the first leveraged Bitcoin Futures ETF became effective. The Volatility Shares 2x Bitcoin Strategy ETF, or BITX, will begin trading on Tuesday 27 June and will allow its investors an exposure to Bitcoin with daily returns.

BREAKING: 🇺🇸 SEC approves the first Leveraged #Bitcoin Futures ETF to start trading on Tuesday.

— Bitcoin Archive (@BTC_Archive) June 23, 2023

Instead of investing directly in Bitcoin, BITX will “seek to benefit from increases in the price of Bitcoin Futures Contracts,” per details of the Fund in the prospectus filed with the SEC. The 2x Bitcoin Strategy ETF will align with the CME Bitcoin Futures Daily Roll Index.

Over the past week or so, Bitcoin has led the market higher, riding on the bullish sentiment triggered by $9 trillion asset manager BlackRock’s filing for a spot Bitcoin ETF. BlackRock has a very high rate of success with ETF applications, which is the reason for the market’s optimism.

Analytics platform IntoTheBlock pointed out what a spot ETF would mean for Bitcoin adoption and price.

💡 But why is this important? Unlike the Bitcoin futures ETF approved in 2021, a spot ETF would buy actual Bitcoin instead of derivative contracts. This could draw in traditional investors and fuel Bitcoin’s price.

— IntoTheBlock (@intotheblock) June 23, 2023

Indeed, the asset manager’s filing paved the way for a frenzy of spot ETF applications from several other Wall Street giants and global financial institutions. With BTC price in bullish momentum, it’s likely the market could see many more mega moves by smart money.

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