Direxion Joins the Race for Bitcoin and Ether Futures ETFs

In a recent development, Direxion, a leading provider of leveraged and inverse ETFs in the U.S., has submitted an application to the U.S. Securities and Exchange Commission (SEC) for Bitcoin and Ether futures products.

Direxion Joins the Race for Bitcoin and Ether Futures ETFs

This move follows a trend of similar applications by other major players such as ProShares, Volatility Shares, Grayscale Investments, VanEck, Bitwise, and Roundhill Investments, who have all filed for an Ether futures ETF in the past week.

The proposed Direxion Bitcoin Ether Strategy ETF, if approved, will invest in futures contracts of both Bitcoin and Ether. The ETF could also potentially include other ETFs that have exposure to these futures products.

Crypto Market Buzzes as Direxion Files for Bitcoin and Ether Futures Products

Historically, the SEC has been known to reject spot Bitcoin futures and ETFs, with nearly ten such applications having been filed previously. However, if the Ether ETF application is approved, it could launch 75 days post-approval, with Volatility Shares potentially being the first to go live on October 12, followed by other funds.

The crypto market has been buzzing with excitement around crypto-related ETFs, especially after BlackRock, a global investment management corporation, filed for the first time on June 15. The success of futures ETFs could be promising, as evidenced by the SEC’s previous allowance of Bitcoin futures ETFs to enter the market in 2021.

The first of these, the ProShares Bitcoin Strategy ETF (BITO), managed to amass $1 billion in assets under management within just a few days of its launch.

Potential Hurdles Ahead: Direxion’s Application for Bitcoin and Ether Futures ETFs Faces SEC Scrutiny

However, experts caution that there are potential hurdles that could lead to the SEC refusing the application. These include concerns about the current level of Ether futures liquidity and the ongoing ambiguity about whether Ether is considered a security or a commodity.

The outcome of these applications will undoubtedly have significant implications for the future of cryptocurrency ETFs.