Connect with us

Crypto ETF

ETF Issuer Creates Investment Product Designed to Short Bitcoin

Published

on

Exchange-traded fund (ETF) issuer Direxion is showing interest in launching an ETF that shorts Bitcoin (BTC), the world’s top cryptocurrency.

In a filing with the U.S. Securities and Exchange Commission (SEC), the company says that the product, named Direxion Bitcoin Strategy Bear, will provide short exposure to the Chicago Mercantile Exchange’s (CME) Bitcoin futures contracts.

“The Fund seeks to achieve its investment objective through managed short exposure to CME Bitcoin futures contracts. The Fund does not invest directly in Bitcoin.”

Advertisement

According to the SEC filing, the Direxion Bitcoin Strategy Bear ETF will hold short positions in Bitcoin futures contracts irrespective of market direction.

“The Fund will generally maintain its short exposure to Bitcoin Futures during periods in which the value of Bitcoin is flat or declining as well as during periods in which the value of Bitcoin is rising.”

If approved, Direxion Bitcoin Strategy Bear will be listed and traded on the ETF and equities exchange NYSE Arca.

Advertisement

Direxion’s filing coincides with another exchange-traded fund issuer, Valkyrie, applying to launch a leveraged Bitcoin ETF. According to Valkyrie’s SEC filing, the Valkyrie XBTO Levered BTC Futures ETF will apply a 1.25x leverage if approved.

“The Fund seeks daily investment results, before fees and expenses, that correspond to one and a quarter times (1.25x) the daily performance of the Bitcoin Reference Rate. The Fund does not seek to achieve its stated investment objective over a period of time greater than a single day.”

If approved, the Valkyrie XBTO Levered BTC Futures ETF will list and trade on the Nasdaq stock exchange.

Advertisement

News Source

Crypto ETF

Asset Management Giant Invesco launches two exclusive crypto ETFs

Published

on


The leading global asset management firm, Invesco Ltd. announced its exclusive partnership with Galaxy Digital Holdings Ltd. has led to the launch of the two new passively managed crypto exchange-traded funds (ETFs) – The Invesco Alerian Galaxy Crypto Economy ETF (SATO) and the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC) that will be listed on the Cboe Global Markets.

The asset management giant noted that these ETFs will be dedicated to enabling a secure passage for financial entities to invest in digital assets and blockchain. The mentioned ETFs will offer global public companies and select investment vehicles a regulated path into the decentralized market. Furthermore, both ETFs will also sustain a certain share of an investment vehicle that directly holds physical cryptocurrency.

“Today’s launch opens up a new way for investors to access this fast-growing asset class, combining exposure to key companies in the cryptocurrency and blockchain ecosystem with an allocation to an investment vehicle that directly holds digital assets, all within the ETF wrapper…The combined, broad expertise Alerian and Galaxy bring to these Invesco ETFs is a unique advantage and we are excited to align with both firms on a combined long-term vision around the potential digital assets and blockchain can bring to clients’ investment outcomes.”, said John Hoffman, Head of Americas, ETFs & Indexed Strategies at Invesco.

ETFs to track both, crypto services & blockchain firms

According to the press release, Invesco Alerian Galaxy Crypto Economy ETF (SATO) will track the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity, Trusts & ETPs Index. This means that SATO will be responsible for firms that extract most of their revenue from businesses operating on cryptocurrency activities such as cryptocurrency miners, cryptocurrency infrastructure technologies, and cryptocurrency buyers.

Advertisement

Meanwhile, the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC) will track the Alerian Galaxy Global Blockchain Equity, Trusts & ETPs Index. BLKC will offer an investment into the same organizations, however, it will also extend to companies that are engaged in the research and development of blockchain technology, and not merely confined to cryptocurrency.

News Source

Advertisement
Continue Reading

Crypto ETF

JPMorgan: Crypto Markets, Fueled by Retail Buying Frenzy, are Once Again in a Bubble

Published

on

Earlier this week, investment bank JPMorgan released investor notes suggesting that the cryptocurrency markets have become bloated again, with market conditions appearing more bubble-like than anticipated. “Cryptocurrency markets [are] looking frothy again,” the investment note read. 

The note, which was released last Wednesday, suggested that retail investors’ appetite for digital assets skyrocketed alongside traditional equities. 

Retail demand spiked to record highs, thanks to historically low interest rates and the Fed’s dovish outlook for the remainder of the year. Analysts at JP Morgan estimated a net flow of $13 billion into the U.S. stock market in August alone — up substantially from $16 billion in July. 

Advertisement

Increased Retail Demand for Crypto Played Major Role in Recovery, JP Morgan

The JPMorgan research team asserted that the massive influx of capital had also found its way into cryptocurrencies. It’s certainly possible that a retail buying frenzy played a key role in the resurgence of the crypto markets late into summer. 

Heavyweights Bitcoin (BTC) and Ethereum (ETH) plummeted over 50% following their all-time highs back in May. Prices began to recover in late July, with BTC and ETH rallying approximately 55% and 90%, respectively. 

6 mo chart of Ethereum (ETH/USD) and Bitcoin (BTC/USD) on Tradingview.com

The gains of the two largest cryptocurrencies, however, pale in comparison to the altcoins and non-fungible tokens that have exploded in popularity. As DeFi found its latest use case in NFTs, projects such as Solana rallied to record highs. Per Tradingview, Solana is up 390% in the past month alone, while being up 7,000% YTD at press time. 

Bitcoin’s dominance has also continued to slip. As Ethereum and other coins such as Cardano, Ripple, and Binance Coin surged higher, BTC’s total market share in market capitalization dipped to 41.23% — down from 73.78% at the beginning of the year. 

Advertisement
1 Year Bitcoin Dominance Chart (BTC.D) on Tradingview.com

JP Morgan Reports Bitcoin Continuing to Lose Its Market Share, with Altcoins on the Rise

The JPMorgan analysts also wrote that altcoin trading represents approximately 1/3rd of the crypto market. It remains unclear whether the figure only accounted for spot market volume; nonetheless, it was a substantial increase from 22% in early August. 

The share of altcoins looks rather elevated by historical standards and in our opinion it is more likely to be a reflection of froth and retail investor ‘mania’ rather than a reflection of a structural uptrend.”

The major investment bank remains cautious of the rapidly expanding alternative asset class; still, there are no tell-tale signs that suggest crypto’s parabolic growth will slow down soon — at least for now.

News Source

Advertisement
Continue Reading

Crypto ETF

Victory Capital files SEC application for crypto ETF

Published

on

Investment firm Victory Capital Management has filed an application with the United States Securities and Exchange Commission (SEC) for a cryptocurrency exchange-traded fund.

In a Form S-1 registration filed Tuesday with the regulatory body, Victory said it intended to move forward with listing an exchange-traded fund, or ETF, tracking the Nasdaq Crypto Index. The index consists of eight cryptocurrencies: Bitcoin Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Chainlink’s LINK, Stellar’s Lumen (XLM), Filecoin (FIL) and Uniswap’s UNI.

“A potential future ETF offering will provide our clients with convenient exposure to multiple coins while introducing a new asset class for their portfolios,” said Mannik Dhillon, president of VictoryShares, Victory Capital’s ETF provider.

Advertisement

The SEC has not yet approved any crypto ETF in the United States. Companies including VanEck, Valkyrie Digital Assets and Fidelity Investments have applied for registering crypto ETFs with the SEC, but the regulatory body has delayed any final decision by using extensions and opening the matter to public comments.

Victory announced in June that it would be taking steps for its U.S.-based investors to get exposure to the crypto market. The firm said it would launch a private fund for accredited investors tracking the Nasdaq Crypto Index and private funds that will track the Nasdaq Bitcoin Reference Price Index and the Nasdaq Ethereum Price Index.

As of June 30, Victory Capital had more than $161 billion in assets under management. The price of Victory Capital Holdings’ stock on the Nasdaq under the ticker VCTR has risen more than 9% in the last week to reach $31.95 at the time of publication.

Advertisement

News Source

Continue Reading