Leverage Shares by Themes has unveiled a new exchange-traded fund (ETF) linked to the stock of the Nasdaq-listed cryptocurrency exchange, Coinbase (COIN), despite the recent downturn in crypto-associated stocks. The introduction of the Leverage Shares 2X Long Coinbase Daily ETF (COIG) comes amidst a notable slump in the cryptocurrency market, with bitcoin (BTC) witnessing a nearly 19% drop over the past three months, from above $105,000 to around $84,000 at present.
This new ETF, which aims to provide double the daily return of Coinbase’s stock price, offers traders enhanced exposure to the largest cryptocurrency exchange in the U.S. Despite COIN shares observing a harsher decline, losing almost 42% of their value during the same period, the ETF allows investors to exploit the volatility of Coinbase’s stock performance without the necessity of directly owning shares.
In a press release, it was announced that the ETF has been listed on Nasdaq and carries an expense ratio of 0.75%. These kind of single-stock leveraged ETFs, for both long and short positions, are predominantly used for short-term trading due to the high risk levels associated with daily compounding. The gains and losses for both types are magnified when the prices of the underlying stocks witness substantial movement.
