Exchange-traded fund (ETF) issuer Direxion filed for a Bitcoin and Ether futures product Wednesday, joining a whole raft of companies hoping to launch similar crypto-related trading products in the U.S.
According to a filing with the U.S. Securities and Exchange Commission (SEC), the Direxion Bitcoin Ether Strategy ETF would invest in bitcoin and ether futures contracts, should regulators approve the product. The product may also invest in other ETFs with exposure to futures products.
The move comes the same week six other companies filed to launch ether futures ETFs. They join a crowded field of crypto ETF hopefuls; the SEC is currently reviewing more than half a dozen applications to launch a spot bitcoin ETF.
The SEC has traditionally rejected ether futures and spot bitcoin ETFs. The spot bitcoin ETF applicants believe they have met the regulator's requirements, emphasizing details like surveillance-sharing agreements in recent applications.
Earlier on Wednesday, Bloomberg Intelligence analysts said they gave the chances of the SEC allowing a bitcoin ETF a favorable rating.
The ether future ETF applicants hope to begin trading later this year, if the SEC does not ask them to withdraw their filings.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.