Financial Products Provider Direxion Files for Registration of Five Bitcoin ETFs
Direxion, a financial products provider, has recently submitted filings to register five Bitcoin exchange-traded funds (ETFs) with the U.S. Securities and Exchange Commission (SEC), according to Bloomberg analyst James Seyffart. The documents reveal Direxion’s plans to create BTC funds with long leverage ratios of 1x, 1.5x, and 2x, as well as short leverage options. These leveraged ETFs are designed to mirror the daily returns of an underlying index.
Leveraged Bitcoin ETFs Could Outnumber Long-Only Positions
Bloomberg ETF analyst Eric Balchunas commented that leveraged Bitcoin ETFs may soon surpass long-only positions in the market. Direxion is the third company to file for a leveraged ETF, following ProShares and REX Shares.
Grayscale Investments CEO Predicts Limited Survival for Approved Spot Bitcoin ETFs
The SEC has already approved 11 applications for spot Bitcoin ETFs, leading other market participants to submit similar proposals. However, Grayscale Investments CEO Michael Sonnenshein believes that only a few spot BTC-ETFs will survive in the market. He suggests that two or three funds may gain significant assets under management, while the rest may fade away.
Hot Take: Leveraged Bitcoin ETFs Gain Traction in Regulatory Filings
Direxion’s recent filing to register five leveraged Bitcoin ETFs with the SEC indicates growing interest in these investment products. With plans for both long and short leverage options, Direxion aims to provide investors with various strategies for exposure to Bitcoin’s price movements. As more companies enter the market seeking approval for leveraged BTC-ETFs, it remains to be seen how regulators will respond and whether these products will gain widespread adoption. The potential for leveraged ETFs to outnumber long-only positions suggests a shift in investor preferences and trading strategies within the cryptocurrency market.
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