Leverage Shares by Themes has introduced a new exchange-traded fund (ETF) linked to Coinbase (COIN), the cryptocurrency exchange listed on Nasdaq. Despite the recent decline in crypto-related shares, the Leverage Shares 2X Long Coinbase Daily ETF (COIG) aims to provide traders with double the daily return of Coinbase’s stock price, offering increased exposure to the largest cryptocurrency exchange in the United States. This ETF, which has an expense ratio of 0.75%, is now listed on Nasdaq.
The launch of this ETF comes at a time when the cryptocurrency market has experienced 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 almost 42% of their value during the same period.
Investors can now take advantage of Coinbase’s stock performance volatility without directly owning shares through this new ETF. These single-stock leveraged ETFs, available for both long and short positions, are typically used for short-term trading due to the high level of risk associated with daily compounding. When the prices of the underlying stocks experience significant movements, the profits and losses for these ETFs are amplified.
It is important for traders and investors to carefully consider the risks involved in leveraged ETFs and to assess their investment goals and risk tolerance before engaging in such trading strategies.
In conclusion, the Leverage Shares 2X Long Coinbase Daily ETF (COIG) offers traders an opportunity to amplify their exposure to Coinbase’s stock price movements. Despite the recent downturn in the cryptocurrency market, this ETF allows investors to participate in the volatility of Coinbase shares without directly owning them. However, it is crucial to understand the risks associated with leveraged ETFs and to make informed investment decisions based on individual financial goals and risk tolerance.
