The new strategy to be adopted by Dirextion involves the decision to move against the crypto bill. Yesterday, the fund filed with the Securities and Exchange Commission (SEC) and the filing with SEC revealed that they plan to offer shorting to Bitcoin futures contracts. Dirextion fund seems to be adopting a risky strategy that could have a high return if it works out. This is because the fund is betting against Bitcoin ETF which will be a risky move for short-sellers.
Dirextion Adopts Risky Strategy
According to Bloomberg, there is a possibility that short sellers will be wiped out due to a trend of shorting Bitcoin ETF. Also, this is confounded by the fact that Bitcoin is a highly volatile digital currency. The filing with the Securities and Exchange Commission (SEC) also acknowledged the risks of liquidity and issues surrounding the futures roll.
The risky approach of the fund is acknowledged in the filing with the Securities and Exchange Commission (SEC), as investors were advised about the risk involved in investing with the fund. This includes the possibility of a significant and unexpected change in the fund’s value, and also the risk of investors losing their entire investment with the fund. So due to this risky strategy being adopted by the Dirextion fund, investors are cautioned to invest wisely with due awareness of the risks.
Betting against ProShares and Valkyrie Bitcoin Strategy ETF which are well supported by futures is a risky strategy that may prove unwise. It is risky considering the fact that Bitcoin has been gaining momentum with its current bull run especially since the approval of Bitcoin futures ETF by the Securities and Exchange Commission (SEC). Hence, the support for Bitcoin has risen drastically since the approval and this has been reflected in the bull run of the crypto.
Tesla Considers Reaccepting Bitcoin as Payment
According to CoinGape’s report, it was pointed out that the quarterly report of Tesla revealed plans to reaccept cryptocurrency as payment for its products and services. Several crypto legends believe that Bitcoin has the potential to solve the inflation problem facing the United States. The Bitcoin community is in a frenzied mood as many are optimistic about the future of Bitcoin with some predictions claiming Bitcoin may soon reach a price of $100 thousand.
A total of $1.5 billion in Bitcoin was bought over the last nine months according to Tesla’s quarterly report. The report also stated that Bitcoin was accepted as payment for some Tesla products in specific regions where it was legal before this was stopped in May. The report also revealed that Tesla may begin to accept cryptocurrency for its products and services in the near future. Bitcoin is gaining momentum and popularity and now Tesla seems to be looking to benefit from the rising interest in cryptocurrency.