Direxion submits five leveraged spot Bitcoin ETF applications

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Monetary merchandise supplier Direxion has filed to register 5 Bitcoin (BTC) ETFs.

Bloomberg analyst James Seyffart reported that on Jan. 18, Direxion filed to register 5 leveraged Bitcoin ETFs with the U.S. Securities and Change Fee (SEC).

Direxion’s paperwork present plans to create Bitcoin funds with lengthy leverage of 1x, 1.5x, and 2x, and one for every fund with brief leverage. Leveraged ETFs are exchange-traded funds structured to reflect the every day returns of an underlying index.

Bloomberg ETF analyst Eric Balchunas additionally famous in a commentary that leveraged Bitcoin ETFs might quickly outnumber long-only positions.

Direxion turned the third firm final month to file for a leveraged ETF, becoming a member of ProShares, which filed for 5 leveraged Bitcoin ETFs on Jan. 16, and REX Shares, which filed for six leveraged Bitcoin ETFs on Jan. 3.

Thus far, the SEC has approved 11 purposes for spot Bitcoin ETFs, prompting market members to submit comparable purposes. Nevertheless, Grayscale Investments CEO Michael Sonnenshein believes that many of the authorized spot BTC-ETFs within the U.S. won’t survive. He stated two or three spot Bitcoin ETFs “could have some essential mass” of property beneath administration, however the remainder might be gone from the market.

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