Direxion Joins Trend With Bitcoin And Ethereum Futures ETF Application

Key Points:

• On Wednesday, direxion filed a Bitcoin and Ether futures product application with the SEC.
• Prior to that, Volatility Shares, Bitwise, VanEck, Roundhill, ProShares, and Grayscale had filed an Ether ETF application with the SEC.
• The first ether futures ETF could go live on October 12 if the SEC doesn’t reject the application.

According to Coindesk, U.S. primary leveraged and reversible ETF provider Direxion filed an application for Bitcoin and Ether futures products with the US SEC on Wednesday.

Should authorities accept the product, the Direxion Bitcoin Ether Strategy ETF will invest in bitcoin and ether futures contracts, according to a filing with the U.S. Securities and Exchange Commission (SEC). Additional ETFs having exposure to futures products may be purchased through the program.

In addition to ProShares, Volatility Shares, Grayscale Investments, VanEck, Bitwise, and Roundhill Investments filed for an ETH futures ETF this past week.

The SEC has traditionally rejected spot bitcoin futures and ETFs, although nearly 10 applications have been filed before. However, if approved, the Ether ETF will launch 75 days after the application, and Volatility Shares will be the first application on October 12 and the funds to follow.

The excitement in the crypto market around crypto-related ETFs was triggered after a wave of spot bitcoin ETF registrations came into focus, especially after BlackRock filed for the first time on June 15.

The win for futures ETFs could be promising, as the SEC previously allowed bitcoin futures ETFs to come to market in 2021. The first ETF to launch, the ProShares Bitcoin Strategy ETF (BITO), obtained $1 billion in assets under management in the first few days.

On the other hand, experts assess that concerns surrounding the current level of ether futures liquidity, as well as the lack of clarity on whether ether is considered a security or a commodity, are possible reasons why the SEC may refuse.

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