One for the depths and the other with “leverage for the ants” ????

The issuer of Exchange Traded Funds (ETD) Direxion has unveiled a product that would allow speculators to buy short contracts on the price of Bitcoin (BTC).

In a filing with the US Securities and Exchange Commission on Tuesday The company has introduced the Direxion Bitcoin Strategy Bear ETF. As with other futures products, you don’t invest directly in BTC instead will hold managed short position contracts issued by the Chicago Mercantile Exchange (CME).

Direxion stated that the fund may invest in other BTC futures, money market funds, deposit accounts or short term debt securities. However, the company issued an extreme warning that the value of the product could reach zero.

• The value of an investment in the Fund may decrease significantly to zero without notice. You have to be ready to lose all of your investment. ”

One for the depths and the other with “leverage for the ants” ????
One for the depths and the other with “leverage for the ants” ????

Bloomberg’s senior ETF analyst, Eric Balchunas described it as a reverse bitcoin ETF. According to reports, the company already has a “BTC -1x Futures ETF” in Canada called BITI, adding, “While it’s gotten bad enough, when it does work it works (since Bitcoin tends to sell quickly).”

Direction originally submitted a Bitcoin ETF in 2018But he ended up in the queue with everyone else the SEC was delaying at the time.

Bloomberg reported that on Tuesday Valkyrie has launched a leveraged BTC futures ETF that offers 1.25x exposure to the asset. If approved, it will trade under the BTFX ticker and may include futures, swaps, options and forwards.

Not everyone is impressed with the minimal leverage available; User VandelayBTC referred to a Zoolander meme to make a subtle complaint.

Commenting on the new and creative futures products currently proposed, The ETF Store President Nate Geraci said, calledTo what there will be more such filings and Ether (ETH) futures before a spot product is approved.

The SEC has blessed CME’s Bitcoin futures from a regulatory perspective. If these leveraged and inverse products exist in other blessed markets there is no reason why they shouldn’t exist here. ”

As if it were a reaction to the bearish product proposal, Bitcoin prices are down 3.6% in the past 24 hours and were trading at $ 60,787 at the time of writing.

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