Leverage Shares by Themes has launched a brand new exchange-traded fund (ETF) tied to the Nasdaq-listed cryptocurrency trade Coinbase (COIN) inventory regardless of a downturn within the crypto-related shares.
The Leverage Shares 2X Lengthy Coinbase Day by day ETF (COIG) is designed to ship twice the each day return of Coinbase’s inventory value, providing merchants an amplified publicity to the U.S.’s largest cryptocurrency trade. The ETF, which carries an expense ratio of 0.75%, is listed on Nasdaq, in keeping with a press launch.
The launch comes amid a big 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, shedding almost 42% of their worth throughout the identical interval.
The brand new ETF permits traders to reap the benefits of Coinbase’s inventory efficiency volatility with out instantly holding shares.
All these single-stock leveraged ETFs, for each longs and shorts sides, are sometimes used for short-term buying and selling as a result of excessive ranges of dangers related to each day compounding. The earnings and losses for each forms of these are amplified when the costs of the underlying shares transfer considerably.
