Asset management company AXS Investments has submitted two Bitcoin (BTC) ETF applications to the US Securities and Exchange Commission (SEC) on the 27th.
The ETFs are named “AXS Bitcoin Strategy ETF” and “AXS Short Bitcoin Strategy ETF”.
According to its filing, “AXS Bitcoin Strategy ETF” will invest in Bitcoin futures contracts, joint investment products that provide exposure to Bitcoin, and exchange-traded funds. The fund would not invest in Bitcoin directly.
On the other hand, the AXS Short Bitcoin Strategy ETF would take a short position against Bitcoin. It aims to maintain a -1x correlation with the CME (Chicago Mercantile Exchange) Bitcoin reference rate for a single day.
In addition to short positions in Bitcoin futures contracts, it would also include swap contracts for investment products seeking exposure to the Bitcoin reference rate.
The US SEC approved the first Bitcoin futures ETF application on the 15th of this month. ETF manager Direxion also applied for a Bitcoin futures ETF that offers -1x leverage on Wednesday.
Also, asset management company Valkyrie submitted a prospectus for leveraged Bitcoin ETFs. However, the SEC has knocked down the application, according to a tweet by Bloomberg senior ETF analyst Eric Balchunas.
Looks like the SEC not having it w the levered (and likely inverse) Bitcoin futures ETFs. Can’t hurt to try tho. Had they gone through likely billion dollar trading vehicles in a few yrs. via Dow Jones pic.twitter.com/MspMRf3hL9
— Eric Balchunas (@EricBalchunas) October 27, 2021