Leveraged Bitcoin ETF Assets Surge Ahead of Halving as Investors Bet on New Bull Run

In the lead-up to the bitcoin halving on April 19th, investors have piled into leveraged bitcoin ETFs like the 2X Bitcoin Strategy ETF (BITX), which has seen massive 255% returns since June 2023.

BITX has surged to become the largest holder of bitcoin futures contracts on the Chicago Mercantile Exchange (CME), crossing the $3 billion threshold in contracts held.

There has been significant growth overall in bitcoin futures trading volume and open interest ahead of the halving across asset managers and leveraged firms.

Unlike spot bitcoin ETFs, products like BITX bundle cash-settled futures contracts instead of directly purchasing bitcoin, allowing them to make bigger bets.

Halvings have historically preceded bitcoin bull runs, so there are reasons to expect strong continued demand for leveraged and spot bitcoin ETFs post-halving.