Special bitcoin exchange fund for large investors launches

There are now quite a few crypto-focused investment funds, and that number is still growing. A new listed fund has an approach that you don’t see very often. It allows you to invest with leverage without having to do much.

Investing in bitcoin with a leverage fund

This week announced Volatility Shares a new exchange-traded funds (ETF) under the name 2x Bitcoin Strategy ETF with the ticker BITX. This is the first ETF on a US exchange with integrated leverage. You can also with some brokers leverage but that is not for everyone and it requires the necessary knowledge.

BITX has bitcoin futures as its underlying asset. A normal futures ETF aims to copy the bitcoin price one-to-one, but BITX literally doubles the volatility. So you can make twice as much profit on the price of bitcoin, but also lose twice as much.

The fund has been trading on the NYSE Arca since last Tuesday. According to Blockworks the ETF had a trading volume of approximately $5.5 million on day one. This puts it in 30th place out of 195 ETFs launched in 2023. The business newspaper describes the introduction as ‘above average, but not impressed’. At the time of its launch, the trading volume of BITO, another popular bitcoin ETF, shot through the $1 billion mark.

The issuer, Volatility Shares, has one other ETF with built-in leverage, UVIX. In addition, this company offers three other stock funds that focus on the VIX (also known as the fear index).

Bitcoin ETFs are popular again

ETFs are a hot topic right now. This started when BlackRock applied for a so-called ‘spot bitcoin ETF’. This type is considered the holy grail of crypto exchange funds, but no fund of this type has been authorized in the US yet.

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Shortly after the BlackRock news, traders bought shares in Grayscale’s fund GBTC in droves. Grayscale has been trying to turn this fund into a spot ETF for some time, and the news sparked new hope.

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