Direxion Files for ETF Linked to Bitcoin Futures Shorts

Direxion is looking to roll out a new Bitcoin exchange-traded fund that would offer short crypto futures, Bloomberg reported.

Dubbed as the Direxion Bitcoin Strategy Bear ETF, the fund will give investors short exposure to CME Bitcoin futures contracts based on a filing with the corporate regulator.

The fund will come with a number of risks, such as the potential of a wipeout for short-sellers, along with the volatility that comes with Bitcoin, and liquidity and issues around the futures roll.

The fund comes after the successful launches of ProShares Bitcoin Strategy ETF and Valkyrie Bitcoin Strategy ETF last week, both backed by Bitcoin-linked futures.

Bitcoin has surged to an all-time high close to $67,000 amid the ETF launches. BITO is down 5.07%, BTF down 4.82%, and BTC down 5.00%.