Exchange-traded fund issuance firm Direxion has reportedly submitted the filing for a new offering, which would make it possible for speculators to purchase contracts that short the price of Bitcoin.

Specifically, via a filing received by the U.S. Securities and Exchange Commission on Oct. 26th, the firm reportedly revealed details of the Direxion Bitcoin Strategy Bear ETF. 

Bearing similarities of different standard futures products, it will not make investments in BTC in a direct manner, but rather will maintain managed short exposure position contracts issued by the Chicago Mercantile Exchange (CME).

Direxion further disclosed that the fund can potentially make investments in different BTC futures, money market funds, deposit accounts, or short-term debt instruments. Nonetheless, the firm did issue a dire warning that the value of the product could go to zero.

“The value of an investment in the Fund could decline significantly and without warning, including to zero. You should be prepared to lose your entire investment.”

Bloomberg senior ETF analyst Eric Balchunas reportedly regard it as an inverse Bitcoin ETF, claiming that the company already has a ‘-1x BTC futures ETF’ in Canada dubbed BITI, further shared that “while it’s gotten pretty wrecked, when it works it WORKS (as Bitcoin tends to sells off fast).”

Direxion initially completed the submission for a filing of a Bitcoin ETF three years ago (2018), but was stuck in the queuing list with all of the others that the SEC had delayed at the time.

“SEC has blessed CME Bitcoin futures from a regulatory perspective. If these leveraged & inverse products exist in other blessed markets, then no reason not to exist here.” ETF Store President Nate Geraci reportedly shared his belief, regarding there will be an increased number of these types of filings and ETH futures appearing before a spot product receives the go-ahead.