Leverage Shares Launches New ETF Linked to Coinbase

Leverage Shares by Themes has introduced a new exchange-traded fund (ETF) associated with the Nasdaq-listed cryptocurrency exchange Coinbase (COIN) stock, despite a slump in crypto-related shares.

ETF Overview

The Leverage Shares 2X Long Coinbase Daily ETF (COIG) aims to provide twice the daily return of Coinbase’s stock price, giving traders amplified exposure to the U.S.’s largest cryptocurrency exchange. The ETF has an expense ratio of 0.75% and is listed on Nasdaq, as per a press release.

Market Context

This launch occurs amid a considerable downturn in the cryptocurrency market, where bitcoin (BTC) has fallen approximately 19% over the last three months, declining from over $105,000 to about $84,000. During the same period, COIN shares have experienced even greater losses, plummeting nearly 42%.

The new ETF enables investors to capitalize on Coinbase’s stock performance volatility without directly holding shares.

Trading Considerations

Single-stock leveraged ETFs like this one, whether for long or short positions, are generally utilized for short-term trading due to the elevated risks related to daily compounding. Both profits and losses are magnified when the underlying stock prices fluctuate significantly.