The 11 Bitcoin spot listings in the United States have achieved impressive results after being listed for trading, with the total trading volume exceeding US$10 billion within a week. The success of Bitcoin spot ETFs has attracted the market, and many fund companies have launched more leveraged products.
Bloomberg ETF analyst James Seyffart tweeted this morning (19th) that Direxion submitted a 5-tier leveraged Bitcoin ETF application document. These tiers are 2x, -2x, 1.5x, -1.5x and -1x leverage respectively.
Long before Direxion, multiple issuers such as: Tuttle Capital, Rex Shares and ProShares had also submitted similar applications.
ProShares submitted applications for leveraged Bitcoin spot ETFs with five different levels on the 16th. These applications include: ProShares UltraShort Bitcoin ETF (-2x leverage), ProShares ShortPlus Bitcoin ETF (-1.5x leverage), ProShares Short Position Bitcoin ETF (-1x leverage), ProSharesPlus Bitcoin ETF (1.5x leverage) and the ProShares Ultra Bitcoin ETF (2x leverage). These applications are designed to provide investors with more choice and flexibility to accommodate different investment needs and risk appetites.
Tuttle Capital Management also submitted an application for six leveraged Bitcoin ETFs to the SEC in early January, including 1.5x, 1.75x and 2x long and short ETFs for Bitcoin spot ETFs.
Eric Balchunas, another Bloomberg ETF analyst, said he expects the number of leveraged Bitcoin ETFs may soon exceed related long products. This has never happened in the past, so there is a certain degree of certainty.
Balchunas pointed out in the latest tweet that the trading volume of the nine Bitcoin spot ETFs (excluding GBTC) increased by 34% compared with yesterday. increased by 34% to $1.05 billion, while GBTC’s volume fell by 24% to $1.059 billion.
Balchunas was surprised to observe: Usually, after the listing of ETFs, trading volume will steadily decrease every day, and there will rarely be a reversal. However, except for GBTC, other products have shown an upward trend, while GBTC’s trading volume has remained relatively stable. So I don't think this is a problem with market volatility, but rather a positive sign.
However, Balchunas also added that GBTC’s discount has reversed, falling back to -0.96%. He said: "This change is likely to be caused by selling pressure in the market, but we still need to judge the specific situation through future capital flows."
GBTC is under huge selling pressure due to high management fees and narrow discounts. Investors choose to take profits and understand. This has also caused GBTC to continue to transfer BTC. Since the listing of the Bitcoin spot ETF, it has transferred a total of 41,478 BTC (worth approximately US$1.784 billion) to Coinbase. This may be one of the reasons for the continued decline in Bitcoin prices.
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