Financial products provider Direxion has filed to register five Bitcoin (BTC) ETFs.
Bloomberg analyst James Seyffart reported that on Jan. 18, Direxion filed to register five leveraged Bitcoin ETFs with the U.S. Securities and Exchange Commission (SEC).
Direxion’s documents show plans to create Bitcoin funds with long leverage of 1x, 1.5x, and 2x, and one for each fund with short leverage. Leveraged ETFs are exchange-traded funds structured to mirror the daily returns of an underlying index.
Bloomberg ETF analyst Eric Balchunas also noted in a commentary that leveraged Bitcoin ETFs could soon outnumber long-only positions.
Direxion became the third company last month to file for a leveraged ETF, joining ProShares, which filed for five leveraged Bitcoin ETFs on Jan. 16, and REX Shares, which filed for six leveraged Bitcoin ETFs on Jan. 3.
So far, the SEC has approved 11 applications for spot Bitcoin ETFs, prompting market participants to submit similar applications. However, Grayscale Investments CEO Michael Sonnenshein believes that most of the approved spot BTC-ETFs in the U.S. will not survive. He said two or three spot Bitcoin ETFs “may have some critical mass” of assets under management, but the rest could be gone from the market.
Source: https://crypto.news/direxion-submits-five-leveraged-spot-bitcoin-etf-applications/