Despite the crypto market decline, Leveraged Shares plans to launch 3x and -3x leveraged Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) for European clients next week.
Leveraged Shares plans to launch leveraged crypto fund next week
Leveraged Shares is reportedly considering offering a first-of-its-kind ETF offering 3x leverage on Bitcoin and Ethereum, Bloomberg ETF analyst Eric Balchunas said in a statement. Post On Friday.
The products, which include 3x long and 3x short leveraged funds for both assets, are expected to launch next week on the Switzerland-based SIX exchange.
The move will mark an expansion of Leveraged Shares’ portfolio of leveraged products, providing investors with new tools to capitalize on crypto market movements. The company already has similar products for a number of stocks including Apple, Tesla, Facebook and Amazon.
This is not the first time that a company intends to launch a 3x-leveraged crypto ETF. Defense Investments proposed a similar set of leveraged crypto-related ETFs in a filing with the U.S. Securities and Exchange Commission (SEC) in October. The application consists of 49 funds that will offer investors 3x leveraged and inverse leveraged exposure.
These funds will provide triple daily returns (both long and short) in Bitcoin, Ethereum, Solana, crypto-focused stocks, tech stocks and gold.
The move comes amid a continued decline in crypto, with Bitcoin and Ethereum both down 21% and 26% so far in November. BTC is trading slightly below $84,000, while ETH has fallen to $2,700 amid a strong bearish environment over the past week.
Given the volatile nature of crypto assets, the launch of a leveraged crypto ETP could prove risky. Market participants have expressed concerns about the potential impact of the fund on investors, suggesting that high leverage exposure could lead to immediate liquidations during periods of strong volatility.
Eric Balchunas also said in his post that “Times are either really good or really bad, depending on your perspective.”
