Dirextion to Offer US ETF Shorting Bitcoin Futures
The Direxion Bitcoin Strategy Bear exchange-traded fund has decided to run against the crypto bull and is planning to offer the shorting option to CME Bitcoin futures contracts, which is revealed in a filing with the Securities and Exchange Commission (SEC) yesterday. Nevertheless, the phrase ‘higher the risk the higher the return’ fits correctly for the Direxion fund, which is betting against the Bitcoin ETF, exposing the short sellers to numerous risks.
According to Bloomberg, shorting the Bitcoin ETF trend also brings forth the potential for short sellers to be wiped out, along with having to face the issue of Bitcoin’s high volatility. Furthermore, the filing also noted risks of liquidity and issues around the futures roll.
“If you are not prepared to accept significant and unexpected changes in the value of the Fund and the possibility that you could lose your entire investment in the Fund you should not invest in the Fund,” Bloomberg quoted from the filing report.
Bitcoin Frenzy
The bet against the frenzied ProShares Bitcoin Strategy ETF and Valkyrie Bitcoin Strategy ETF, which are both supported by futures, may appear to be an unwise decision, especially when Bitcoin has been gaining more positive traction for its exceptional bull run. Since the implementation of BTC ETF in the US, the Bitcoin community’s support has only become louder and clearer.
While in CoinGape’s exclusive coverage it was revealed that Tesla’s quarterly report pointed out the company’s plans to restart cryptocurrency payments for its products and services, another exclusive saw crypto legends assert that Bitcoin could potentially solve the problem of inflation in the US. The Bitcoin community is thrilled for what more is to come in near future, predicting BTC may touch $100K soon.
“During the nine months ended September 30, 2021, we purchased an aggregate of $1.50 billion in bitcoin. In addition, during the three months ended March 31, 2021, we accepted bitcoin as a payment for sales of certain of our products in specified regions, subject to applicable laws, and suspended this practice in May 2021. We may in the future restart the practice of transacting in cryptocurrencies (“digital assets”) for our products and services.”, stated Tesla’s quarterly report.
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