Direxion, a renowned provider of tradeable and thematic ETFs, has announced the launch of two new exchange-traded funds (ETFs): the Direxion Daily Crypto Industry Bull 2X Shares (Ticker: LMBO) and the Direxion Daily Crypto Industry Bear 1X Shares (Ticker: REKT). These ETFs are designed to provide traders with leveraged investment opportunities that align with the dynamic movements of the crypto industry.
LMBO and REKT aim to achieve daily investment results, before fees and expenses, of 200% and 100% of the inverse, respectively, of the performance of the Solactive Distributed Ledger & Decentralized Payment Tech Index. This index tracks the performance of U.S.-listed securities operating in the fields of blockchain technology, non-fungible tokens, decentralized finance, and digital asset mining hardware.
According to Edward Egilinsky, Managing Director at Direxion, "Crypto equities are among the fastest-growing companies in the world, now representing an almost $3 trillion asset class. LMBO and REKT provide focused exposure for traders to express their short-term conviction on companies building the future of a crypto-driven, decentralized economy."
The introduction of these ETFs comes at a time when the global markets are undergoing rapid changes, presenting both challenges and opportunities. The crypto industry continues to show promising growth, and Direxion is committed to offering timely investment vehicles that align with the shifting dynamics of the financial markets.
It is important to note that all Direxion Daily Leveraged and Inverse ETFs are intended for investors who have a deep understanding of the risks associated with leveraged investments and who actively monitor and manage their positions. There is no guarantee that these ETFs will meet their investment objectives. For those interested in learning more about leveraged ETFs, Direxion offers an educational center that includes brochures, videos, and a self-paced online course.
The launch of LMBO and REKT could have significant implications for the crypto investment landscape. By offering leveraged exposure to the crypto market, these ETFs provide sophisticated investors with tools to capitalize on both upward and downward movements in the sector. However, potential investors should be aware of the inherent risks, including market volatility, leverage risk, and specific risks related to the crypto industry.
Direxion has built a reputation for developing products that precisely express market perspectives and allow investors to manage risk exposure. Founded in 1997, the company manages approximately $42.9 billion in assets as of June 30, 2024. For more information, visit Direxion's website.
Investors should carefully consider the investment objectives, risks, charges, and expenses of the funds before investing. The prospectus and summary prospectus contain this and other information and should be read carefully before investing.
