CoinShares Files Bitcoin Volatility ETF

Key Insights

• CoinShares wants to list a Bitcoin Volatility ETF to be known as CBIX
• The product will allow traders to bet on Bitcoin price fluctuations when the SEC approves it.
• Bitcoin saw a surge in value amid signs of increased volatility after speculation that the US-Iran war would end.

Crypto investment firm CoinShares has filed an application for a Bitcoin Volatility exchange-traded fund (ETF). The firm submitted a prospectus for the ETF to the US Securities and Exchange Commission (SEC).

The new product, which will trade under the CBIX ticker when it finally lists, is the latest in the firm’s Bitcoin ETF variants. CoinShares also offers the spot Bitcoin ETF, BRRR, and the Bitcoin Miners ETF, WGMI.

More Bitcoin-Based ETFs Emerging Despite Asset Struggles

The new product will allow traders to bet on Bitcoin’s volatility. Through CBIX, traders can gain exposure to Bitcoin price changes without holding the flagship asset.

This means that the ETF will most likely track Bitcoin futures on an established futures exchange such as the CME. Interestingly, similar products already exist for equity, such as Fidelity VIX ETFs. Given Bitcoin’s inherent volatility, many believe the Volatility ETF could prove popular.

In most cases, volatility ETFs are mostly traded by institutional investors who use them for short-term hedging. However, a Bitcoin Volatility ETF could attract retail investors for speculation purposes.

Meanwhile, CIBX’s introduction means Bitcoin now has another product driven by price fluctuations. There are already several leveraged Bitcoin ETFs that give investors two-times exposure to Bitcoin performance.

Nevertheless, it is unclear when the SEC will approve the product. The regulator has been quiet on ETF applications this year, even as over 100 crypto-focused ETFs for Bitcoin, altcoins, and even memecoins are pending before it.

Bitcoin Rises to $70,000 as Trump Hints at Iran War Resolution

Meanwhile, Bitcoin is up 3.75% today, climbing above $70,000 again, amid speculation that the US-Iran war will end soon. The war, which is already in its fourth week, has had a major impact on the global economy, with oil prices soaring.

However, President Donald Trump had said recently that there have been positive conversations between the US and Iran on de-escalation and resolving the conflicts. Trump disclosed in his Truth Social post that discussions will continue.

The president has ordered a pause on any military strike against Iran’s energy and power infrastructure for five days. While this is dependent on talks continuing, it marks the first sign of dialogue between the countries, dousing the tensions that had flared.

Crypto liquidations. Source: CoinGlass

Unsurprisingly, the recent surge in BTC value destroyed leveraged positions, especially for leveraged traders. CoinGlass data shows that $272 million in Bitcoin positions were liquidated in the last 24 hours, while $216 million in ETH positions were liquidated.

Interestingly, Bitcoin ETFs have seen renewed interest from investors since the war started, in experts’ view, a sign of diversification amidst uncertainty. Still, it has experienced more outflows recently, with $104 million in net outflows on March 20, even as net inflows stood at $294 million.

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