ETFs
REX Shares Launches 2X Bitcoin ETFs for Volatility Traders
REX Shares and innovative ETF provider Tuttle Capital Management launched the T-REX 2X Long Bitcoin Daily Target ETF (CBOE: BTCL) and T-REX 2X Inverse Bitcoin Daily Target ETF (CBOE: BTCZ) on July 10, offering high-conviction Bitcoin traders 200% exposure to Bitcoin price volatility.
Rather than holding bitcoin cash directly, these ETFs use financial derivatives to provide leveraged or inverse exposure to bitcoin. The launch comes amid significant inflows into Bitcoin ETFs, with $650 million in inflows since July 5, fueled by recent price declines due to massive BTC liquidations by the German government and defunct Japanese exchange Mt. Gox.
Scott Acheychek, COO of REX Financial, the parent company of REX Shares, said“Bitcoin’s meteoric rise in 2024 has captured the attention of investors and traders around the world. By launching 2X leveraged and inverse Bitcoin Spot ETFs, we are equipping traders with powerful tools to capitalize on Bitcoin’s price movements like never before.”
In June, REX Shares’ “T-REX” lineup, which now includes the new Bitcoin ETFs, surpassed $5 billion in total assets under management (AUM), with over $1 billion attracted to T-REX funds alone over the past year.
However, leveraged ETFs often underperform the underlying assets due to the constant leverage trap, which forces funds to buy low and sell high to maintain their leverage target.
Additionally, these ETFs typically have high management fees. REX Shares’ new ETFs each charge a 0.95% management fee, which is significantly higher than the roughly 0.2% fee charged by cash BTC ETFs like Franklin Templeton Digital Holdings Trust (EZBC), VanEck Bitcoin Trust (HODL), and iShares Bitcoin Trust (IBIT).
The new offerings from REX Shares and Tuttle Capital offer traders an aggressive way to capitalize on Bitcoin’s price movements, but investors should be aware of the higher costs and potential performance issues associated with leveraged ETFs.
Read also : Australian ASX to List DigitalX Bitcoin ETF, Trading to Begin July 12