Direxion Files for BTC and ETH Futures ETF in a Sign of Traditional Financial Giants’ Growing Interest in Crypto

Direxion is a financial services company that specializes in creating investment products for investors seeking more than the conventional offerings. Their products are index-based and provide investors with directional options, magnified exposure, and long-term, rules-based strategies.

Founded in 1997, Direxion has grown significantly, and as of March 31, 2023, it manages approximately $27.5 billion in assets. The company has expanded its presence and now operates from four offices located in the United States and Hong Kong. This allows Direxion to cater to a broad range of investors across different markets.

According to an article by CoinDesk, Direxion has filed for a Bitcoin and Ether futures exchange-traded fund (ETF). This move comes amidst a flurry of similar filings by various companies, all vying to launch crypto-related trading products in the U.S.

According to the U.S. Securities and Exchange Commission (SEC) filing, the proposed Direxion Bitcoin Ether Strategy ETF would invest in Bitcoin and Ether futures contracts, provided the regulators give the green light. The ETF could also potentially invest in other ETFs that have exposure to futures products.

As CoinDesk pointed out, in the past few days, a wave of applications for Ether (ETH) futures-based exchange-traded funds (ETFs) has hit the U.S. Securities and Exchange Commission (SEC), riding on the coattails of the recent Bitcoin spot ETF frenzy. The first to make a move was Volatility Shares with its Ether Strategy ETF application, submitted on July 28. This company had previously made headlines in June when its 2x Bitcoin Strategy ETF (BITX) became the inaugural leveraged crypto ETF available in the U.S.

By the start of August, a flurry of other companies had followed suit, filing for their own Ether Strategy ETFs. These included Bitwise, VanEck, Roundhill, and ProShares, with the latter submitting applications for both a Short Ether Strategy ETF and a standard Ether Strategy ETF. Grayscale also threw its hat into the ring with its Ethereum Futures ETF.

Despite the surge in applications, the SEC has yet to approve any ETFs tracking Ethereum futures contracts. Close to ten such applications have been submitted in the past, but none have received the green light.

The SEC has so far rejected all Ether futures and spot Bitcoin ETF applications. However, the spot Bitcoin ETF applicants believe they have met the regulator’s requirements and have emphasized details like surveillance-sharing agreements in their recent applications.

Analysts from Bloomberg Intelligence have given a favorable rating to the chances of the SEC allowing a Bitcoin ETF. The applicants for the Ether future ETF are hopeful of beginning trading later this year, provided the SEC does not ask them to withdraw their filings.

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