On Friday, the SEC gave the green light for a change proposed by Cboe, allowing six new triple-leveraged investment products to be listed, including funds associated with Bitcoin and Ethereum.
- BlackRock’s iShares Bitcoin Trust ETF saw its 50-day moving average surpass the 200-day moving average.
- The SEC sanctioned a Cboe BZX rule amendment to enable the listing of six 3x leveraged offerings from Volatility Shares’ VS Trust.
- Each fund can only commence trading once its registration has been officially validated.
This past Saturday, BlackRock’s (BLK) iShares Bitcoin Trust ETF (IBIT) demonstrated a golden cross after the SEC approved a rule change permitting the listing of triple-leveraged products tied to Bitcoin (BTC) and Ether (ETH).
Data from Koyfin indicates that IBIT’s 50-day simple moving average (SMA) registered at 41.97, slightly above its 200-day average of 41.92. The formation of a golden cross occurs when the shorter moving average exceeds the longer one, often interpreted as a bullish indicator by traders.
According to SoSoValue data, new capital inflows into U.S. spot Bitcoin (BTC) exchange-traded funds began the month positively, accumulating $102.67 million on October 1. Leading this influx was BlackRock’s iShares Bitcoin Trust ETF, which garnered $195.57 million.
IBIT’s inflow exceeded the total net inflow for the group. Total net assets across these funds reached $109.34 billion, while net inflows for the week leading up to October 1 were $51.25 million.
Approval for Leveraged Bitcoin and Ethereum Funds
Alongside the daily inflow reports, the SEC implemented measures that could expand the array of Bitcoin products available.
The SEC certified a rule change from the Cboe BZX Exchange on Friday, which permits six products from Volatility Shares’ VS Trust to be listed. Each of these seeks to achieve three times the daily returns of their underlying benchmarks, including Bitcoin, Ethereum (ETH), gold, silver, crude oil, and natural gas.
Volatility Shares has filed for leveraged crypto offerings previously. In its 2023 application for the 2x Bitcoin Strategy ETF (BITX), the company highlighted its goal of achieving a specific multiple of daily returns, noting that results over extended periods may deviate from this multiple and could move in the opposite direction. These new products introduce leveraged crypto options alongside commodity ETFs.
Trading for any fund cannot begin until the fund’s registration has been validated, and no start date for trading has been established.
Bitcoin’s price hovered around $84,800, reflecting a decline of over 0.2% in the preceding 24 hours. Meanwhile, the retail sentiment surrounding BTC on Stocktwits shifted to a ‘bearish’ stance from neutral, with discussion levels increasing from previously low activity.
Read also: Worldcoin Sees Gains as Total Value Locked Rises Amid Bitcoin’s Slide Below $85K
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