BlackRock's IBIT ETF Flashes Golden Cross As SEC Approves Triple-Leveraged Bitcoin, Ethereum ETPs

The SEC approved a Cboe rule change on Friday that allows six triple-leveraged products to list, including funds tied to Bitcoin and Ethereum.

• BlackRock’s iShares Bitcoin Trust ETF has its 50-day average moving above its 200-day average.
• The SEC approved a Cboe BZX rule change on Friday to allow listing of six 3x leveraged products from Volatility Shares’ VS Trust.
• Trading in each fund can only begin once the fund's registration has become effective.

BlackRock’s (BLK) iShares Bitcoin Trust ETF (IBIT) flashed a golden cross on Saturday, as the Securities and Exchange Commission (SEC) approved a rule change to allow triple-leveraged Bitcoin (BTC) and Ether (ETH) products to be listed.

According to Koyfin data, IBIT’s 50-day simple moving average (SMA) was 41.97, only up from its 200-day average of 41.92. The shorter average crosses above the longer one to form a golden cross. Traders often read it as a bullish sign.

SoSoValue data showed US spot Bitcoin (BTC) exchange-traded funds began October with new inflows. The funds had net inflows of $102.67 million on Oct. 1. Topping the list was BlackRock’s iShares Bitcoin Trust ETF with $195.57 million. 

IBIT’s inflow exceeded the group’s net inflow. SoSoValue data showed total net assets across the funds hit $109.34 billion. Net inflows through October 1 for the week to date were $51.25 million

Leveraged Bitcoin, Ethereum Funds Approved

In addition to the daily flows, the SEC implemented an action that could broaden the selection of Bitcoin products.

The SEC approved a Cboe BZX Exchange rule change on Friday, according to a filing. It allows six of the products from Volatility Shares’ VS Trust to list on the exchange. Each seeks three times the daily return of its benchmark. The lineup includes Bitcoin and Ethereum (ETH) as well as gold, silver, crude oil and natural gas.

Volatility Shares has previously filed for leveraged crypto funds. In its 2023 filing for the 2x Bitcoin Strategy ETF (BITX), the firm said such funds seek to achieve a set multiple of daily returns. It also pointed out that returns over longer periods can diverge from that multiple and can even move in the reverse direction. The new products put leveraged crypto alongside commodity funds.

No trading in any fund shall occur before the fund's registration becomes effective, and no trading date will be set.

Bitcoin’s price was trading around $84,800, down over 0.2% in the last 24 hours. On Stocktwits, retail sentiment around BTC dropped to ‘bearish’ from the ‘neutral’ zone, as chatter rose to ‘normal’ from ‘low’ levels over the past day. 

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