Leverage Shares by Themes has launched a brand new exchange-traded fund (ETF) tied to the Nasdaq-listed cryptocurrency alternate Coinbase (COIN) inventory regardless of a downturn within the crypto-related shares.
The Leverage Shares 2X Lengthy Coinbase Each day ETF (COIG) is designed to ship twice the every day return of Coinbase’s inventory value, providing merchants an amplified publicity to the U.S.’s largest cryptocurrency alternate. The ETF, which carries an expense ratio of 0.75%, is listed on Nasdaq, based on a press launch.
The launch comes amid a big cryptocurrency market downturn that noticed bitcoin (BTC) drop by round 19% over the past 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 buyers to benefit from Coinbase’s inventory efficiency volatility with out immediately holding shares.
All these single-stock leveraged ETFs, for each longs and shorts sides, are sometimes used for short-term buying and selling because of the excessive ranges of dangers related to every day compounding. The earnings and losses for each forms of these are amplified when the costs of the underlying shares transfer considerably.
