Exchange-traded fund (ETD) issuer Direxion has filed for a production that would enable speculators to buy contracts that brusk the toll of Bitcoin (BTC).

In a filing made to the United States Securities and Exchange Commission on Tuesday, the company unveiled the Direxion Bitcoin Strategy Bear ETF. Like other futures products, it will non invest directly in BTC only volition instead maintain managed short-exposure position contracts issued by the Chicago Mercantile Exchange (CME).

Direxion stated that the fund may invest in other BTC futures, money market funds, eolith accounts or short-term debt instruments. Nevertheless, the firm did issue a dire alert that the value of the product could go to cipher.

"The value of an investment in the Fund could decline significantly and without alarm, including to nix. You should be prepared to lose your unabridged investment."

Bloomberg senior ETF analyst Eric Balchunas described it every bit an inverse Bitcoin ETF. He reported that the company already has a "-1x BTC futures ETF" in Canada called BITI, calculation, "While information technology'south gotten pretty wrecked, when it works it WORKS (as Bitcoin tends to sell off fast)."

Direxion originally filed for a Bitcoin ETF in 2022, only it ended up in the queue with all of the others that the SEC had delayed at the fourth dimension.

Bloomberg reported that on Tuesday, Valkyrie filed for a leveraged BTC futures ETF that will offer 1.25x exposure to the asset. If approved, information technology will merchandise under the ticker BTFX and will be able to agree futures, swaps, options and forwards.

Not everyone was impressed with the minimal leverage available, with user VandelayBTC referring to a Zoolander meme to throw shade.

Related: Too popular: Bitcoin futures ETF in danger of striking upper limit for contracts

Commenting on the creative new futures products existence proposed at the moment, The ETF Store president Nate Geraci said that in that location will be more of these types of filings and Ether (ETH) futures before a spot product wins approval.

"SEC has blest CME bitcoin futures from a regulatory perspective. If these leveraged & changed products exist in other blessed markets, then no reason not to exist here."

Equally if in response to the bearish production proposal, Bitcoin prices take retreated 3.half dozen% over the past 24 hours to trade at $60,787 at the time of writing.