Direxion CEO Discusses Directional ETFs, Volatility Opportunities, and Hong Kong Listing Plans

On December 4, 2025, Direxion CEO Douglas Yones stated in a YouTube interview [1] that market volatility driven by headlines is more pronounced than ever, and directional ETFs can enable short-term traders to leverage this volatility. Concurrently, Direxion is working to list its ETF suite on the Hong Kong Stock Exchange (HKEX), responding to a migration of investors from stock warrants and futures contracts to ETF products. However, the day prior (December 3, 2025), the SEC halted high-leveraged ETF plans from Direxion, ProShares, and Tidal due to risk concerns [0], which could impact market perception of the firm’s products. Direxion’s existing ETFs include the NASDAQ-100 Equal Weighted Index Shares (AUM ~$1.13 billion) and Daily Real Estate Bull 3X Shares (AUM ~$64.31 million) [0], though total suite AUM is unavailable.

1. Regulatory Contrast
   : The SEC’s action highlights increased scrutiny of leveraged ETFs in the U.S., while Direxion’s HKEX expansion plan signals a push into a new growth market, creating a dual landscape of risk and opportunity.
2. Market Shift Alignment
   : The migration from warrants/futures to ETFs in Hong Kong reflects demand for simpler, more regulated derivative products, which aligns with Direxion’s directional ETF offerings.
3. Volatility Relevance
   : Yones’ emphasis on headline-driven volatility underscores the potential relevance of directional ETFs for short-term traders seeking to capitalize on rapid market swings.

• Opportunities
  : Access to the Hong Kong ETF market could expand Direxion’s investor base, particularly amid the ongoing shift from warrants/futures to ETFs.
• Risks
  : The SEC’s halt on high-leveraged ETFs indicates elevated regulatory risk, which may affect Direxion’s product development and investor confidence. Success in Hong Kong also depends on market acceptance of Direxion’s products over established alternatives.

This analysis synthesizes information on Direxion’s directional ETF strategy, volatility-focused approach, HKEX listing plans, and recent SEC regulatory action. It highlights the potential opportunities in Hong Kong’s evolving ETF market and the regulatory risks facing the firm in the U.S., without providing prescriptive investment recommendations.