A new exchange-traded fund (ETF) tied to the Nasdaq-listed cryptocurrency exchange Coinbase (COIN) stock has been launched by Leverage Shares by Themes, despite a downturn in the 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 U.S.’s largest cryptocurrency exchange. With an expense ratio of 0.75%, the ETF is listed on Nasdaq, as stated in a press release.
This launch comes at a time of significant cryptocurrency market decline, with bitcoin (BTC) falling by approximately 19% in the past three months, dropping from over $105,000 to around $84,000. COIN shares have seen an even greater decline, losing nearly 42% of their value during the same period.
Investors now have the opportunity to benefit from Coinbase’s stock performance volatility without directly holding shares through this new ETF.
These types of single-stock leveraged ETFs, designed for both long and short positions, are typically utilized for short-term trading due to the high risks associated with daily compounding. Profits and losses for both types are magnified when the underlying stock prices experience significant movements.
