Leveraged Bitcoin ETFs Could Happen

Direxion, already one of the largest issuers of inverse and leveraged exchange traded funds, could add several bitcoin-related products to its lineup of leveraged funds.

Direxion is looking to introduce the Direxion Daily Bitcoin Bear 1X Shares, Direxion Daily Bitcoin 1.25X BullShares, Direxion Daily Bitcoin 1.5X Bull Shares, Direxion Daily Bitcoin 2X Bull Shares and Direxion Daily Bitcoin 2X Bear Shares, according to a recent regulatory filing.

The ETFs Direxion is planning “will offer investors the opportunity to obtain daily short, leveraged long or leveraged short exposure to the lead month bitcoin futures contract traded on the Chicago Mercantile Exchange (“CME”) or on Cboe Global Markets, Inc. (“CBOE”) or on any other U.S. exchange that subsequently trades bitcoin futures contracts,” according to the filing.

In early December, bitcoin futures launched on the Cboe followed by the CME on Dec. 18. Nasdaq plans to launch futures on the cryptocurrency later this year.

To date, bitcoin ETFs have not been approved by U.S. regulators. Several ETF issuers filed plans last year for such products, but the plans were scrapped because, at the time of those filings, there was not a bitcoin futures market.