Direxion submits application for inverse Bitcoin futures ETF
Popular ETF manager Direxion on Tuesday submitted an application for a -1x Bitcoin Futures ETF. The ETF seeks to maintain a short position on contracts issued by the Chicago Mercantile Exchange.
INVERSE BITCOIN ETF: Direxion just filed for a -1x Bitcoin Futures ETF, which will seek to be short front month bitcoin futures, basically the $XIV of $BITO.. This comes mere hours after the first levered bitcoin ETF was filed. pic.twitter.com/bN2m7pIZw5
— Eric Balchunas (@EricBalchunas) October 26, 2021
According to documents filed with the US Securities and Exchange Commission, the ETF ‘Direxion Bitcoin Strategy Bear ETF’ will not directly invest in “or seek short exposure to, the current “spot” or cash price of bitcoin”.
In addition to Bitcoin futures, the fund would invest in other bitcoin futures ETFs or money market funds, deposit accounts, or short-term debt instruments.
“The Fund will generally maintain its short exposure to Bitcoin Futures during periods in which the value of bitcoin is flat or declining as well as during periods in which the value of bitcoin is rising,” the document read.
Direxion’s filing for a new Bitcoin ETF came three years after the SEC rejected its previous applications for the much-hyped Bitcoin product.
The application came just hours after Valkyrie announced the filing of its leveraged Bitcoin futures ETF with the SEC on the 26th. The ETF seeks to offer 1.25x exposure to the bitcoin reference rate if approved by the regulatory body.
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