Markets, Coinbase, ETF The ETF permits buyers to capitalize on the volatility of Coinbase’s inventory with out immediately holding shares.
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 Long Coinbase Daily ETF (COIG) is designed to ship twice the day by 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, based on a press release.
The launch comes amid a major 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, shedding practically 42% of their worth throughout the identical interval.
The new ETF permits buyers to benefit from Coinbase’s inventory efficiency volatility with out immediately holding shares.
These varieties of 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 day by day compounding. The income and losses for each varieties of these are amplified when the costs of the underlying shares transfer considerably.
Read extra: Leveraged ETFs Tied to Strategy See Trading Volume Surge as Bitcoin-HODLer MSTR Teeters on 200-Day Average
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