In a move that will certainly not end well for investors, the New York Stock Exchange has asked the SEC to approve five ETFs including 2x leveraged and inverse flavors, linked to Bitcoin futures – which launched in December on the CME amd Cboe, according to a Thursday filing, which is in line with what we said mentioned in August, “we suspect a Bitcoin Futures ETF may actually occur before a Bitcoin ETF.”

The five “derivative of derivative” funds are as follows:

Direxion Daily Bitcoin 1.25X Bull Shares
Direxion Daily Bitcoin 1.5X Bull Shares
Direxion Daily Bitcoin 2X Bull Shares
Direxion Daily Bitcoin 1X Bear Shares
Direxion Daily Bitcoin 2X Bear Shares

The target Bitcoin benchmark will be calculated as the last sale price published by the CME or CBOE on or before 11:00 a.m. EST, and “should not be expected to track the performance of the target benchmark for any period longer than one business day.”

Additionally, while each Fund will seek daily correlation to the target benchmark, it should not be expected to track dollar for dollar the spot price of bitcoin because the Fund will invest in Bitcoin Futures Contracts rather than directly in bitcoin, and the spot price movements of bitcoin may not correspond directly to price movements of the Bitcoin Futures Contracts

This means that a 1 percent gain in the price of bitcoin futures would result in a gain of between 1.25% and 2% for the bulish funds, and a 1-2% loss on bear shares, although due to the theta associated with the inherent leverage, the securities will ultimately see their value evaporate over time.

Of course, as the filing explicitly warns, “the funds are not intended for long-term investing.” Which means hang on to your hats as the world’s most volatile asset (besides electricity) becomes even more volatile.

Just like with the underlying futures, during periods of extreme volatility, the NYSE will halt trading in the ETFs pursuant to existing rules that govern listed securities, as well as “during the day in which interruption to the dissemination of the IFV or the value of the Bitcoin Futures Contract occurs. If the interruption to the dissemination of the IFV or the value of the Bitcoin Futures Contract persists past the trading day in which it occurred, the Exchange will halt trading.”

Assuming SEC approval, the five new ETFs will trade on the NYSE’s Arca, a secondary marketplace. The exchange said the products would “enhance competition among market participants, to the benefit of investors and the marketplace,” according to Business Insider.

This filing by the NYSE is the latest indication that Wall Street (*cough* Jamie Dimon) is coming to grips with the fact that they can’t simply wish Bitcoin out of existence.

In June, the CTFC approved Bitcoin options, issuing a license to LedgerX allowing it to create the first swap-execution facility for the clearing and settlement of bitcoin options, a decision that will likely attract more traditional hedge funds and CTAs to trade crypto.

In early August, chatter over Bitcoin ETF approval heated up – with analyst Spencer Bogart putting the odds of Bitcoin ETF approval at 75% within 18 months.