Direxion files for Bitcoin and Ether ETFs

The daily leveraged and inverse exchange-traded fund (ETF) issuer, Direxion, has filed for Bitcoin (BTC) and Ether (ETH) futures products with the US SEC.

The company follows some other prominent industry players that have filed to launch futures ETFs in recent months, including BlackRock and Valkyrie.

Citing its search for capital appreciation, the filing reveals Direxion wants to achieve its investment goal through crypto futures contracts traded on the Chicago Mercantile Exchange (CME).

As stated earlier, Direxion is not the first to file for futures ETFs. However, even though history reveals that the U.S. Securities and Exchange Commission (SEC) might have approved some non-spot Bitcoin ETFs over the years, it has not approved ETF applications tracking Ethereum.

Speculations about the trigger of the race for crypto-related ETFs abound, including the filing by BlackRock for a Bitcoin ETF, which is currently being screened by the SEC. Being the world’s largest asset management firm, its success seemed to have emboldened several other firms to follow the same path.

Forbes has attributed BlackRock’s success to addressing some concerns the SEC cited before rejecting other past applications and maybe studying the SEC’s lawsuit against Binance and Coinbase Global.

Little is known about the possible response the SEC would give Direxion. Still, the recent call for public input on Bitcoin ETFs and the urge by Grayscale for a simultaneous approval of all Bitcoin ETF applications reveal the pressure the SEC is probably facing, with over six applications before it.

The investment strategy of the filed application reads that Direxion does not invest in bitcoin or ether directly.

The soon-to-be narrative about cryptocurrency ETFs will hopefully significantly improve from last year’s records. 

Direxion has earned its reputation when it comes to traditional finance ETFs. Its recent filing for a Bitcoin Ether strategy ETF to be listed and traded on the New York Stock Exchange (NYSE) Arca could be another step towards broader acceptance and adoption of cryptocurrency.

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