Exchange-traded money issuer Direxion has placed an order for a product that will allow speculators to buy contracts that reduce the price of bitcoins.

In a submission to the US Securities and Exchange Commission on October 26, the company introduced the Direxion Bitcoin Strategy Bear ETF. Like other futures products, it will not invest directly in bitcoin, but will instead have regulated short position contracts issued by the Chicago Mercantile Exchange (CME).

Direxion said the fund could invest in other bitcoin futures, money market funds, savings accounts or short-term debt instruments. However, the company has sharply warned that the cost of the product could go to zero.

“The cost of investing in a fund can fall sharply and without warning, including to zero. You need to be prepared to lose your entire investment. ”
Eric Balchonas, chief ETF analyst at Bloomberg, described it as an inverted Bitcoin ETF. He stated that the company already has a “-1x BTC futures ETF” in Canada called BITI, adding that “although it fell apart a lot when it works (since Bitcoin tends to sell fast).”

Direxion originally applied for a Bitcoin ETF in 2018, but ended up on a waiting list along with all the others that the SEC exposed at the time.

Bloomberg reports that on October 26, Valkyrie applied for a mortgaged BTC futures ETF that will provide 1.25x the exposure to the asset. If approved, it will trade under the ticker BTFX and may contain futures contracts, swaps, options and futures contracts.

Not everyone was impressed with the minimal impact available, as a VandelayBTC user pointed to the Zoolander meme to cast shadows.

RELATED: Very Popular: Bitcoin Futures ETFs Threatened to Maximize Contracts

In a comment on the proposed new creative products of the future, ETF store manager Nate Gerachi said that there will be several such types of ETH deposits and futures before the spot product is approved.

“The SEC has blessed CME bitcoin futures in terms of regulation. If these leveraged and back-leveraged products exist in other blessed markets, there is no reason not to be here.”
In response to a bearish product offering, bitcoin prices have fallen 3.6% in the last 24 hours and stand at $ 60,787 at the time of writing.

Source: CoinTelegraph