Direxion, a leader in the options-powered ETF market worth $100 billion, has applied for over 70 new funds in a single move. This move is made in anticipation of a resurgence in demand for advanced investment products, despite concerns about market saturation and investor fatigue.

The New York-based company has submitted documentation to the Securities and Exchange Commission for the creation of a new series of leveraged and inverse ETFs. This filing spree is noted as the largest ever conducted by an asset management company, as per Bloomberg Intelligence.

Among the numerous trades included in the applications are strategies aiming to enhance returns on individual stocks, catering to both bullish and bearish market directions. Stocks popular among retail traders such as PayPal Holdings Inc., Roblox Corp., and Shopify Inc., as well as sectors like semiconductors, consumer services, and real estate, are covered in the filings.

The surge in filings arrives amidst a challenging time for day traders with long positions, as stock values declined and the S&P 500 recently entered a correction. Notably, leveraged-ETF issuers have seen their assets decline by as much as 18% since the market downturn began in February.

Although not all of the products applied for will be launched, the extensive filing allows Direxion to assess investor interest. Options-based ETFs have experienced significant growth since 2019 when US regulations were relaxed for launching new funds. Leading players in this niche segment include Direxion, ProShares Advisors LLC, Tidal Investments LLC, GraniteShares Inc., Tuttle Capital Management LLC, and AXS Investments LLC.

Despite the increasing competitiveness and risks in the market, Morningstar Inc.'s Bryan Armour warns that daily leveraged and inverse ETFs can be detrimental to investor wealth over the long term. These products are seen as structurally risky due to the daily resetting of leverage, which may lead to significant losses.