In the run-up to the fourth bitcoin halving on April 19th, the quadrennial event where the amount of new bitcoin emitted from the network drops by 50%, investors have been doubling down on their bullish bets on the asset. Literally.
The 2X Bitcoin Strategy ETF (BITX), offered by Palm Beach Gardens, FL-based Volatility Shares, an exchange-traded fund (ETF) issuer launched in 2019 that focuses on leveraged and inverse ETFs, has surged in recent weeks to become the largest holder of bitcoin futures contracts at the Chicago Mercantile Exchange (CME). It first crossed the threshold on April 1, and as of April 12, it holds 9,103 contracts worth $3.1 billion (though its reported AUM is only $1.5 billion because of the extra leverage). It catapulted past the ProShares Bitcoin Strategy ETF (BITO), the long-time industry leader, which holds 7,536 contracts plus cash totalling $1.8…
