It has been a delightful week for the crypto industry because the Security and Exchange Commission finally came around with the idea of decentralization and approved multiple Bitcoin futures ETFs. The first one that went live on New York Stock exchange managed to secure more than $1 billion in net investment right off the bat. It was a massive success right then and there, and because of it, Bitcoin took quite a jumble in its price and value and was able to break its previous all-time high and set a new one at $67K.
But now, when the Security and Exchange Commission has finally approved some ETFs, multiple applications have been piling up which are for the approval of Bitcoin ETF, which would allow the traders to short BTC futures contracts. This filing is done by Direxion and is awaiting a response from the Securities and Exchange Commission. If this ETF, in the long run, gets approved, then it will allow the traders to be able to short Bitcoin futures contracts.
Bitcoin Futures ETF by Direxion
This is the most complicated and difficult scenario in its own doing. Shorting an asset or a stock is never a great idea until the investors or people involved are willing to lose everything they have. Because when you are shorting something, then you are eventually betting against the market and if the market manages to pull through for a standard timeline set for the shorting. Then everything that you have staked so far would be lost. But then again, if the tides turn the other way round and the market loses, then you would end up with everything. So it is an all-in kind of deal.
Despite the fact that bitcoin futures ETFs are doing solidly, Bitcoin, in fact, is not. The performance of these ETFs managed to tickle the price of Bitcoin all the way towards a new all-time high, but that seemed to be a one-way street, and now Bitcoin is declining rapidly and is now trading below $60K.