Leverage Shares by Themes has launched a brand new exchange-traded fund (ETF) tied to the Nasdaq-listed cryptocurrency change Coinbase (COIN) inventory regardless of a downturn within the crypto-related shares.
The Leverage Shares 2X Lengthy Coinbase Every day ETF (COIG) is designed to ship twice the each day return of Coinbase’s inventory worth, providing merchants an amplified publicity to the U.S.’s largest cryptocurrency change. The ETF, which carries an expense ratio of 0.75%, is listed on Nasdaq, in response to a press launch.
The launch comes amid a major cryptocurrency market downturn that noticed bitcoin (BTC) drop by round 19% during the last three months, from over $105,000 to now stand at wrought $84,000. COIN shares noticed even worse efficiency, dropping almost 42% of their worth throughout the identical interval.
The brand new ETF permits traders to make the most of Coinbase’s inventory efficiency volatility with out instantly holding shares.
These kind of single-stock leveraged ETFs, for each longs and shorts sides, are usually used for short-term buying and selling because of the excessive ranges of dangers related to each day compounding. The income and losses for each varieties of these are amplified when the costs of the underlying shares transfer considerably.
Learn extra: Leveraged ETFs Tied to Technique See Buying and selling Quantity Surge as Bitcoin-HODLer MSTR Teeters on 200-Day Common
