Volatility Shares Trust, a firm specializing in cryptocurrency-linked funds and exchange-traded funds (ETFs), has submitted an application to the US Securities and Exchange Commission (SEC) to list shares in a leveraged bitcoin futures ETF. The company filed a Form 8-A on June 23, signaling its intent to launch an investment vehicle that could fall within the jurisdiction of SEC regulations. The registration statement outlines the "2x Bitcoin Strategy ETF" as a volatile stock, denoted by the ticker symbol BITX. This E TF aims to provide leveraged exposure to Bitcoin, reflecting the daily performance of the S&P CME Bitcoin Futures Daily Roll Index double.
While awaiting a definitive response from the SEC, the Volatility Shares Trust has not received a clear rejection of its application for a cryptocurrency investment vehicle. If approved, the leveraged BTC futures ETF would be the first of its kind in the United States. Although the Volatility Shares Trust website indicated plans to commence trading on June 27, the registration statement is not yet effective. Another SEC filing on Form N-1A, related to the listing of leveraged bitcoin futures ETF shares on the CBOE BZX exchange, states that neither the SEC nor the CFTC have made decisions on the accuracy or adequacy of the prospectus. The SEC has typically rejected numerous cryptocurrency ETF applications in the past.
When asked about the SEC's potential actions, a spokesperson from Volatility Shares stated that they cannot comment on the regulatory body's decisions. However, they confirmed that the registration statement is now in effect, and they plan to list and trade the BITX ETF on Bitx, in accordance with SEC regulations. While spot crypto ETFs are yet to receive approval from US financial regulators, ETFs linked to BTC futures have been permitted since 2021, including those offered by Valkyrie and ProShares. Valkyrie has already filed applications with the SEC for its own leveraged bitcoin futures ETF and a spot BTC ETF.
The filing by Volatility Shares Trust coins with the US Securities and Exchange Commission's legal actions against cryptocurrency exchanges Binance and Coinbase for alleged unregistered securities offerings. Some lawmakers in the United States have voiced concerns about S EC Chairman Gary Gensler's approach to regulatory enforcement in the cryptocurrency industry and have called for his removal.
