Asset manager Direxion has unveiled two groundbreaking crypto industry-tracking exchange-traded funds (ETFs) with the tickers LMBO and REKT. Nate Geraci, President of ETF Store, highlighted these additions in a recent post on X, stirring interest among those closely following spot Ethereum ETFs.
According to a recent report, the Direxion Daily Crypto Industry Bull 2X Shares, tickered LMBO, is engineered to achieve a 200% return on investment. This is achieved by tracking the Solactive Distributed Ledger and Decentralized Payment Tech Index.
The ETF targets US-listed securities within the digital asset space. These encompass companies involved in Bitcoin mining, blockchain infrastructure, NFTs, and DeFi. The LMBO ticker references “Wen Lambo,” a phrase popular among cryptocurrency enthusiasts aspiring to purchase a Lamborghini.
Conversely, the Direxion Daily Crypto Industry Bear 1X Shares, with the ticker REKT, aims to provide a 100% return based on the inverse performance of the same Solactive index. The term “REKT” is derived from gaming and crypto slang and signifies significant financial loss.
Eric Balchunas, an ETF analyst at Bloomberg, praised Direxion’s creative ticker choices, labeling them “instant classics.” He observed that leveraged issuers excel in crafting memorable symbols, catering more to younger retail traders than traditional wealth managers.
President of Financial Insyghts Peter Atwater cautioned that the more playful the name, the higher the potential risk in financial services. This sentiment echoes the cautious optimism surrounding Direxion’s new offerings.
In May, Direxion also introduced Daily AI & Big Data “Bull” and “Bear” 2X products, though with less captivating tickers (AIBU and AIBD). Since its establishment in 1997, Direxion has managed nearly $43 billion in assets.
ETH vs BTC: Will Ethereum Outperform Bitcoin After ETF Launch?Despite the initial excitement, LMBO experienced a 1.12% drop on its New York Stock Exchange debut, while REKT saw a modest gain of 0.52%, according to Stockhouse data. Trading volumes reflected varied investor interest, with LMBO accumulating about $36,000 and REKT around $5,000.
As these new ETFs continue to navigate the market, the financial community remains vigilant, watching for their impact on the broader crypto investment landscape. Direxion’s innovative approach to ETF tickers underscores the evolving nature of financial products and their growing appeal among diverse investor demographics.
