Leverage Shares by Themes recently introduced 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) aims to provide traders with twice the daily return of Coinbase’s stock price, offering an amplified exposure to the U.S.’s largest cryptocurrency exchange. This ETF, which comes with an expense ratio of 0.75%, is now listed on Nasdaq, as stated in a press release.
The launch of this ETF comes at a time when the cryptocurrency market is experiencing a significant downturn. Over the past three months, bitcoin (BTC) has dropped by approximately 19%, falling from over $105,000 to around $84,000. COIN shares have fared even worse, losing nearly 42% of their value during the same period.
Despite these challenges, the new ETF provides investors with an opportunity to capitalize on Coinbase’s stock performance volatility without directly holding shares. These single-stock leveraged ETFs, which offer both long and short positions, are commonly used for short-term trading due to the high levels of risk associated with daily compounding. When the prices of the underlying stocks experience significant movements, the profits and losses for these ETFs are magnified accordingly.
Overall, the introduction of the Leverage Shares 2X Long Coinbase Daily ETF (COIG) adds a new dimension to the cryptocurrency investment landscape, offering traders a unique way to gain exposure to Coinbase’s stock performance. As always, investors should carefully consider their risk tolerance and investment objectives before incorporating leveraged ETFs into their portfolios.