Coinbase Stock Decline Can’t Stop Highly Leveraged Long ETF Rollouts

Published on:

Leverage Shares by Themes has launched a new exchange-traded fund (ETF) tied to the Nasdaq-listed cryptocurrency exchange Coinbase (COIN) stock despite a downturn in the crypto-related shares.

The Leverage Shares 2X Long Coinbase Daily ETF (COIG) is designed to deliver twice the daily return of Coinbase’s stock price, offering traders an amplified exposure to the U.S.’s largest cryptocurrency exchange. The ETF, which carries an expense ratio of 0.75%, is listed on Nasdaq, according to a press release.

The launch comes amid a significant cryptocurrency market downturn that saw bitcoin (BTC) drop by around 19% over the last three months, from over $105,000 to now stand at wrought $84,000. COIN shares saw even worse performance, losing nearly 42% of their value during the same period.

The new ETF allows investors to take advantage of Coinbase’s stock performance volatility without directly holding shares.

These types of single-stock leveraged ETFs, for both longs and shorts sides, are typically used for short-term trading due to the high levels of risks associated with daily compounding. The profits and losses for both types of these are amplified when the prices of the underlying stocks move significantly.

Read more: Leveraged ETFs Tied to Strategy See Trading Volume Surge as Bitcoin-HODLer MSTR Teeters on 200-Day Average

Related

Leave a Reply

Please enter your comment!
Please enter your name here

bitcoin
Bitcoin (BTC) $ 84,374.61
ethereum
Ethereum (ETH) $ 1,943.22
tether
Tether (USDT) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.176617
tron
TRON (TRX) $ 0.221766
cardano
Cardano (ADA) $ 0.750300
avalanche-2
Avalanche (AVAX) $ 19.33
chainlink
Chainlink (LINK) $ 14.07
polkadot
Polkadot (DOT) $ 4.37
litecoin
Litecoin (LTC) $ 93.03
monero
Monero (XMR) $ 210.77
stellar
Stellar (XLM) $ 0.275444
aave
Aave (AAVE) $ 173.32
filecoin
Filecoin (FIL) $ 2.96
eos
EOS (EOS) $ 0.505183
iota
IOTA (IOTA) $ 0.185104
dash
Dash (DASH) $ 23.09
sushi
Sushi (SUSHI) $ 0.655522
binance-usd
BUSD (BUSD) $ 0.998209