Direxion Launches New Crypto Industry-Tracking ETFs with Fun Ticker Names

Direxion Launches New Crypto ETFs with Fun Ticker Names: LMBO and REKT

Asset manager Direxion has introduced its latest exchange-traded funds (ETFs) focused on the crypto industry, complete with catchy ticker names: “LMBO” and “REKT.”

The LMBO ETF, known as the Direxion Daily Crypto Industry Bull 2X Shares, aims to provide a 200% return tied to the Solactive Distributed Ledger and Decentralized Payment Tech Index. This fund tracks US-listed securities operating in the digital asset space, including companies involved in Bitcoin mining, blockchain infrastructure, non-fungible tokens, and decentralized finance.

On the other hand, the REKT ETF, or the Direxion Daily Crypto Industry Bear 1X Shares, seeks a 100% return based on the inverse performance of the Solactive index fund.

The choice of tickers is not random. LMBO seems to reference the popular phrase “Wen lambo” used by crypto enthusiasts dreaming of buying a Lamborghini. Meanwhile, ‘REKT’ is a term commonly used in video game slang and crypto trading to describe significant losses or being hacked.

Direxion Managing Director Edward Egilinsky highlighted the rapid growth of crypto equities, now valued at nearly $3 trillion, and emphasized that LMBO and REKT offer traders focused exposure to companies shaping the future of a decentralized economy.

Despite the excitement around the new ETFs, trading volume on their debut day was relatively low. LMBO fell 1.12% while REKT increased by 0.52%, with LMBO accumulating around $36,000 in trading volume and REKT managing about $5,000.

While some praised Direxion’s creative tickers as “instant classics,” others cautioned investors about potential risks. Peter Atwater, President of Financial Insyghts, warned that cute names often lead to greater pain in the world of financial services.

Direxion, known for its innovative ETF offerings, recently launched Daily AI & Big Data “Bull” and “Bear” 2X products with less creative tickers (AIBU and AIBD). The firm, founded in 1997, has grown to manage nearly $43 billion in assets.

Overall, the introduction of LMBO and REKT ETFs adds an element of fun and excitement to the crypto investment landscape, but investors should proceed with caution and consider the potential risks involved.