Direxion, an exchange-traded fund company, has filed for a product that would allow speculators to buy contracts that short the price of Bitcoin.
On October 26, the business announced the Direxion Bitcoin Strategy Bear ETF filing to the US Securities and Exchange Commission. Like other futures products, it will not invest directly in Bitcoin but maintain managed short exposure position contracts issued by the Chicago Mercantile Exchange (CME).
According to Direxion, the fund may invest in other Bitcoin futures contracts, money market funds, deposit accounts, or short-term debt instruments. However, the company did issue a stern warning that the product’s worth could plummet to zero.
According to Bloomberg, Valkyrie applied for a leveraged BTC futures ETF on October 26 to provide 1.25x exposure to the asset. If it receives approval, it will trade under the symbol BTFX. Moreover, it will be able to hold futures, swaps, options, and forwards. Not everyone was impressed with the bit of leverage offered, with user VandelayBTC mockingly alluding to a Zoolander meme.
Bitcoin drops $1K
BTC/USD was reaching $58,000 at the time of writing, according to data from Cointelegraph Markets Pro and TradingView, its lowest level since October 15. Following several retests of $60,000, Bitcoin takes liquidity in a vast support wall with $57,000 as its base.
Analysts were ready, according to Cointelegraph. Some data indicated that a more profound drop to as low as $50,000 would still retain the general bull trend. Meanwhile, Charles Edwards, CEO of investment firm Capriole, commented on the situation, blaming leveraged traders for causing the volatility. Bitcoin appears to be fantastic on most indicators. However, leverage traders have gotten out of hand. Despite Elon Musk’s lack of support, the Shiba Inu cryptocurrency token has reached an all-time high. According to CoinMarketCap, the meme coin was at $0.000059 at roughly 3 a.m. EDT on Wednesday—a fraction of a dollar. However, the highest price it had fetched thus far.
Around the exact moment, the token was up more than 30% in the preceding 24 hours, with a market cap of $22.6 billion.