EXCLUSIVE: Direxion CEO Predicts Crypto, Commodities Will Take Center Stage Amid Volatility In 2025

Zinger Key Points
  • Cryptocurrency ETFs gain traction as investors seek alternatives amid economic uncertainty and inflation concerns.
  • Commodities provide portfolio diversification opportunities as U.S. equity valuations remain high.

Direxion CEO Douglas Yones shared some insights with Benzinga on how cryptocurrency and commodities could benefit from ongoing macroeconomic uncertainties.

Despite traditional markets facing instability, Yones is optimistic about cryptocurrency's continued rise especially Bitcoin BTC/USD.

In 2024, "the top three new ETFs by AUM in the U.S. were all Bitcoin-related, and we expect this trend to continue,” he says.

President-elect Donald Trump‘s pro-crypto administration is expected to play a role in fueling further demand for digital assets. ETFs such as the Direxion Daily Crypto Industry Bull 2X Shares LMBO and the Direxion Daily Crypto Industry Bear 1X Shares REKT could see increasing interest as investors seek growth in this space.

Read Also: Trump Could Sign Crypto-Related Executive Orders On Day 1: Report

Commodities As A Diversification Tool

Commodities are also expected to see heightened demand as a way to diversify portfolios beyond stocks and bonds.

"With U.S. equity valuations at lofty levels and inflation still persistent, commodities can potentially provide added diversification within an overall portfolio," Yones says.

The Direxion Auspice Broad Commodity Strategy ETF COM is one such option.

Leveraged And Inverse ETFs For Flexibility

Traders would be wise to look at leveraged and inverse ETFs, too.

"ETFs, particularly leveraged and inverse ones, offer a flexible way to navigate the ups and downs of the market,” Yones says.

These ETFs can provide both bullish and bearish exposure. This makes them ideal for those seeking to capitalize on short-term market movements.

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