Direxion, a provider of financial products known for its leveraged ETFs, has re-applied with the United States Securities and Exchange Commission (SEC) for its Bitcoin Strategy Bear ETF.
The ETF in question bitcoin It aims to perform in the opposite direction of the price movements.
Direxion’s Move Comes Just After ProShares Filed A Similar SEC Filing On Wednesday
Direxion’s move comes after ProShares filed with the SEC for a similar product on Wednesday.
As it is known, ProShares received SEC approval for the first BTC futures ETF in history. Therefore, it is thought that this ETF of the company is also likely to receive approval from the authorized institution.
Direxion’s Bitcoin Strategy Bear ETF aims to broker short positions on BTC futures contracts. So this ETF will perform well if the BTC price drops.
Direxion’s ETF application filed in early November was withdrawn by the company at the request of the SEC. At that time, no reason was given for these developments.
Bitcoin ETF approvals are known to influence the price action of BTC. However, it should be noted that these ETF applications are not spot ETFs but futures ETFs.
After the SEC approved BTC futures ETFs in the past period, other companies also accepted applications in the same field one by one. ETFs for BTC are constantly being delayed in the US, but are already trading in Europe and other countries.
*Not investment advice.