Direxion Submits Five Leveraged Spot Bitcoin ETF Applications

Direxion filed to register five leveraged Bitcoin ETFs with the U.S. Securities and Exchange Commission (SEC) on January 18.

According to documents from Direxion, there are plans to establish one Bitcoin fund for each fund with short leverage and one with long leverage of 1x, 1.5x, and 2x.

Exchange-traded funds designed to mimic the daily returns of an underlying index are known as leveraged ETFs. In a commentary, Bloomberg ETF analyst Eric Balchunas noted that leveraged Bitcoin ETFs may eventually surpass long-only holdings.

Joining ProShares, which filed for five leveraged Bitcoin ETFs on January 16, and REX Shares, which registered for six leveraged Bitcoin ETFs on January 3, Direxion became the third company to file for a leveraged ETF last month.

The SEC has authorized eleven applications for spot Bitcoin ETFs thus far, encouraging other market participants to submit similar applications. Michael Sonnenshein, CEO of Grayscale Investments, predicts that most of the U.S.'s authorized spot BTC-ETFs will only last for a while.

According to him, the market may lose the remaining assets in two or three spots of Bitcoin ETFs, but they “may have some critical mass” of assets under management.