BITX Profile
Volatility Shares Trust - 2x Bitcoin Strategy ETF is an actively managed exchange-traded fund (ETF) launched and managed by Volatility Shares LLC, with co-management provided by Penserra Capital Management LLC. The fund is specifically designed to provide investors with leveraged exposure to Bitcoin, aiming to achieve twice the daily performance of the S&P CME Bitcoin Futures Daily Roll Index. The ETF achieves this goal through a combination of fixed income investments and derivatives focused on Bitcoin.
The fund’s strategy involves investing in Bitcoin futures contracts through a wholly-owned subsidiary based in the Cayman Islands. This subsidiary structure is utilized to gain exposure to Bitcoin futures while adhering to regulatory and tax considerations. The ETF uses various derivatives, including futures contracts, to construct its Bitcoin exposure. This approach allows the fund to track its target index with a leverage factor of 2x on a daily basis.
In addition to its Bitcoin-focused investments, the fund maintains a fixed income component, which includes investments in cash, cash-like instruments, or high-quality securities. This allocation helps to manage liquidity and mitigate risk within the fund’s overall strategy. The fixed income investments support the fund’s operations and provide stability as it seeks to achieve its leveraged performance objective.
Volatility Shares Trust - 2x Bitcoin Strategy ETF was established on June 27, 2023, and is domiciled in the United States. The fund's innovative approach combines leveraged Bitcoin exposure with fixed income investments to offer a unique investment product aimed at investors seeking high-risk, high-reward opportunities in the cryptocurrency market. Through its strategic use of futures and subsidiary structures, the fund aims to deliver targeted returns aligned with its stated performance objectives.
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