(Bloomberg) Direxion has applied for SEC’s approval to launch the Direxion Bitcoin Strategy Bear exchange-traded fund that offers managed short exchange to CME Bitcoin futures contracts.
The ETF is expected to counter the recently launched ProShares Bitcoin Strategy ETF and Valkyrie Bitcoin Strategy ETF.
Direxion’s fund would reportedly have many risks, which include chances of the short sellers being wiped out. Bitcoin’s high volatility is also listed as a potential risk in the filing.
Direxion Bitcoin Strategy Bear ETF will not invest or directly hold bitcoin. The other potential risks are liquidity concerns on future rolls.
Bitcoin surged to a record high of $67,000 following the launch of ProShares Bitcoin Strategy ETF before retreating.
BTCUSD is down -2.26%.
