Direxion launches leveraged ETFs tracking crypto stocks
Asset manager Direxion has launched two new crypto industry tracker exchange-traded funds – complete with interesting ticker names: “LMBO” and “REKT”.
According to a statement on July 17, LMBO is an indicator for Direxion Daily Crypto Industry Bull 2X Shares, which seeks a 200% return on investment linked to the Solactive Distributed Ledger and decentralized payment tech index.
It tracks US-listed securities operating in the digital asset space, from listed firms involved in the Bitcoin mining industry and blockchain infrastructure to fungible tokens and decentralized finance.
The second ETF, labeled as ‘REKT', is the Direxion Daily Crypto Industry Bear 1X Shares, which seeks a 100% return based on the performance of the Solactive Index Fund.
The LMBO ticker appears to be a loose reference to “Wen lambo” – a common phrase used by cryptocurrency enthusiasts who hope to one day own a Lamborghini.
Meanwhile, ‘REKT' is a corrupted phonetic spelling, commonly used in video game slang. In cryptocurrency, the term is often used to describe a trading decision that leads to a significant loss, or a rug-pulling or hacking.
“Crypto equities are among the fastest growing companies in the world, now representing a $3 trillion asset segment,” Direxion Managing Director, Edward Egilinsky, in a statement.
“LMBO and REKT offer traders focused exposure to short-term exposure to companies building the future of a crypto-driven decentralized economy.”
Bloomberg ETF analyst Eric Balchunas described Direxion's tickets as an “instant classic” in a post on X.
“When it comes to fun tickers, leveraged issuers are on another level, which makes sense when they're catering to (young-ish) retail traders and boomer wealth managers.”
Not much trading volume on the first day
LMBO fell 1.12% in early trade on the New York Stock Exchange, while REKT rose 0.52%, Stockhouse data showed.
LMBO accumulates $36,000 in trading volume, while REKT generates about $5,000.
Related: Ethereum ETFs Will Have a Big Impact on ETH Price: Bitwise
Others, looking beyond the tickers, warned that LMBO and REKT investors would endure significant “pain”.
Peter Atwater, president of investment advisory firm Financial Insights, said: “It's a reminder that the higher the name in the financial services world, the greater the ultimate pain.
Dixerion also recently launched daily AI & Big Data “Bull” and “Bear” 2X products in May – but with much less innovative signals (AIBU and AIBD).
The organization Since its inception in 1997, it has accumulated approximately $43 billion in assets under management.
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