New Bitcoin ETFs filed: One for bears, the other with ‘leverage for ants’

Exchange-traded fund (ETD) issuer Direxion has filed for a product that would enable speculators to buy contracts that short the price of Bitcoin (BTC).

In a filing made to the United States Securities and Exchange Commission on Tuesday, the company unveiled the Direxion Bitcoin Strategy Bear ETF. Like other futures products, it will not invest directly in BTC but will instead maintain managed short-exposure position contracts issued by the Chicago Mercantile Exchange (CME).

Direxion stated that the fund may invest in other BTC futures, money market funds, deposit accounts or short-term debt instruments. However, the firm did issue a dire warning that the value of the product could go to zero.

“The value of an investment in the Fund could decline significantly and without warning, including to zero. You should be prepared to lose your entire investment.”
Bloomberg senior ETF analyst Eric Balchunas described it as an inverse Bitcoin ETF. He reported that the company already has a “-1x BTC futures ETF” in Canada called BITI, adding, “While it’s gotten pretty wrecked, when it works it WORKS (as Bitcoin tends to sell off fast).”

Source:cointelegraph.com