Volatility Shares Trust - 2x Bitcoin Strategy ETF Outlook
Description
Volatility Shares Trust - 2x Bitcoin Strategy ETF is an exchange traded fund launched and managed by Volatility Shares LLC. The fund is co-managed by Penserra Capital Management LLC. It invests in fixed income and currency markets. For its currency portion, the fund invests through derivatives in Bitcoin. It uses derivatives such as futures to create its portfolio. The fund seeks to invest in Bitcoin futures contracts through its wholly owned Cayman Islands subsidiary. For its fixed income portion, it invests in cash, cash-like instruments or high-quality securities. The fund seeks to track 2x the daily performance of the S&P CME Bitcoin Futures Daily Roll Index. Volatility Shares Trust - 2x Bitcoin Strategy ETF was formed on June 27, 2023 and is domiciled in the United States.
U.S. stocks are on track to post strong gains for the first quarter. Fed rate cut bets, stronger earnings, and the continued AI boom continue to fuel the rally in the stock market.
As the first quarter comes to a close, clearly, there have been some thematic winners in terms of flows and investment performance. Artificial Intelligence AI-themed ETFs remain among the top recipients of investor flows this year.
Contango and backwardation are important concepts for commodity traders, reflecting price differences for delivery in different periods. The 2X Bitcoin Strategy ETF applies these concepts to Bitcoin futures, allowing investors to profit from the price spreads between different delivery months. BITX has seen significant liquidity and success as an arbitrage product, but it's only suitable for professional traders with experience in cash and carry arbitrage.