Direxion Expands Investment Opportunity To Ethereum ETF

The fund’s name, according to an image of the prospectus paper given by it, is “DIREXION ETHER STRATEGY ETF,” and it seeks to be listed and traded on the New York Stock Exchange Arca. The SEC is now examining the fund’s application.

Direxion just filed for an Ether ETF. Grayscale opened the floodgates yesterday, look for more of this.. pic.twitter.com/9uJZ1AMKCN

— Eric Balchunas (@EricBalchunas) May 10, 2023

Direxion is a financial product provider best known for its leveraged ETFs.

The company has reapplied to the SEC for its Bitcoin Strategy Bear ETF, a futures-based exchange-traded fund that seeks to follow the price of Bitcoin (BTC) in the opposite direction. The Direxion Bitcoin Strategy Bear ETF is designed to maintain short exposure to Bitcoin futures contracts, essentially betting on the cryptocurrency’s price falling.

Direxion has filed for the Direxion Daily Bitcoin Strategy Bull 2X Shares ETF, which would attempt to double the daily performance of the S&P CME Bitcoin Futures Index.

Crypto has recovered from last year’s slump, with Bitcoin almost tripling to go beyond $30,000 this week, up from approximately $16,600 at the beginning of 2023. Several explanations have been postulated for its eye-catching rise, including the possibility of interest rates falling shortly, which would allow riskier assets to appreciate.

Fans of digital assets have also suggested that recent upheaval in the banking sector may have driven some investors into cryptocurrency, which they regard as independent of the traditional-finance system. However, the biggest token has dropped more than 50% from its near-$69,000 peak in 2021. Bitcoin is now trading around $27,500 after a brief break.

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