The price of one bitcoin sank more than 5% on Wednesday, to roughly $59,000, a 12 percent drop from last week's highs. At press time, the largest cryptocurrency by market capitalization was trading at around $58,900, down 2.3 percent on the day. A decrease that steep in such a short time would be called a market correction for any other asset, such as a stock or bond.
The price declines followed the filing of a new bitcoin ETF by Direxion, which would wager against the cryptocurrency's future price. According to a filing with the Securities and Exchange Commission, it will be known as the Direxion Bitcoin Strategy Bear ETF. The proposal comes barely a week after the SEC approved trading in the first bitcoin futures ETF, the ProShares Bitcoin Strategy ETF. Long-term investors who want to get into crypto can probably do it for less money if they acquire it directly. Short-term investors and those concerned about security or access risk, on the other hand, may not be concerned about fund fees.
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