SEC Approves Leverage Bitcoin ETF
A Game-Changer for Institutional Investors holding out on trading in existing centralized exchanges offering BTC futures contracts.
The US Securities and Exchange Commission (SEC) has made a groundbreaking decision, granting approval for the launch of the Volatility Shares Trust 2x Bitcoin Strategy ETF.
The Volatility Shares Trust 2x Bitcoin Strategy ETF is a leveraged investment vehicle designed to offer investors double the excess returns of the S&P CME Bitcoin Futures daily Roll Index. With leverage, investors can magnify potential gains or losses associated with the already volatile Bitcoin price movements.
What's newsworthy about the 2x Bitcoin Strategy ETF is its potential to attract institutional investors. While concerns over Bitcoin's volatility and risks persist, proponents of this leveraged product argue that institutional investors may be enticed by the potential for amplified returns. Their participation in the cryptocurrency market is expected to bring stability and contribute to its overall maturation.
The Ripple Effect:
The approval of a leveraged Bitcoin ETF opens up new possibilities and opportunities for both retail and institutional investors.
Retail investors can now gain exposure to Bitcoin's price movements through a regulated investment vehicle without the need for direct ownership.
On the other hand, institutional investors can leverage this product to manage risk, enhance returns, and diversify their portfolios.
RISK DISCLOSURE: ⚠️
Digital payment token investments, such as cryptocurrencies, are not guaranteed by service providers or cryptocurrency exchanges and the government. It is crucial to exercise caution in investing, including the awareness that a part or all of the capital may be lost and may not be recovered, especially in cases of high price volatility or down market, bankruptcy, seizures and other factors. Hence, the user’s risk tolerance, investment appetite or capacity for loss should be set firstly, and they should observe safe and knowledgeable investment practices accordingly. For more information, please visit MAS' website.
IMPORTANT NOTE: 📢
Coinut.com is a financial entity regulated as a Money Services Business in Canada and an exempt entity under the Payment Services Act in Singapore. Please be reminded that cryptocurrency trading is highly risky and is not suitable for the general public. For more information, please refer to Risk Warnings and Risk Statements.