ETFs
T-Rex Launches 2X Bitcoin ETFs to Compete with ProShares and VolShares
T-Rex launches Bitcoin 2X ETFs to compete in a market dominated by ProShares and VolShares, targeting 200% of Bitcoin’s daily performance.
According to Bloomberg’s Eric Balchunas, T-Rex Group, known for its financial services, has launched the T-Rex 2X Long Bitcoin Daily Target ETF, aiming to disrupt the market currently dominated by ProShares and VolShares. These competitors already collectively manage about $2 billion in leveraged Bitcoin ETFs.
Launching today: T-Rex with 2x and -2x spot Bitcoin ETFs that will challenge ProShares and VolShares, whose leveraged Bitcoin ETFs already represent about $2 billion combined. That’s how good things are in this category right now. pic.twitter.com/PfZALdSQUc
— Eric Balchunas (@EricBalchunas) July 10, 2024
The new ETF products aim to deliver twice the daily performance of Bitcoin spot, marking an addition to the cryptocurrency investment landscape.
Target 200% of Bitcoin’s daily performance
The T-REX 2X Long Bitcoin Daily Target ETF (BTCL), incorporated In the US, the goal is to achieve daily investment results of 200% of Bitcoin’s daily performance, before fees and expenses. Meanwhile, the second product, the T-REX 2X Inverse Bitcoin Daily Target ETF (BTCZ), will track -200% of Bitcoin’s daily performance.
These are actively managed ETFs categorized as cryptocurrencies and alternative assets, with a leverage of 2x. The funds do not aim to achieve their investment objective over periods longer than one trading day. Their high expense ratio of 0.950% and active management strategy make them stand out in the market.
Eric Balchunas, senior ETF analyst at Bloomberg, highlighted the potential competition, pointing to lucrative opportunities in the category. The active management and leverage of T-Rex ETFs could attract investors looking for big short-term gains.
Curiosity about the impact of leveraged crypto ETFs
The announcement of the T-Rex 2X Bitcoin Daily ETFs has sparked notable reactions from the public. One commentator expressed curiosity Regarding the impact of leveraged crypto ETFs on Bitcoin spot prices, I wonder if there are any scientific studies addressing this issue.
An individual describe ETF as a “financial roller coaster,” anticipating intense competition in the ETF market. Another commentator Underlines tax benefits for US investors, expressing surprise that individuals could invest their gross salary tax-free in a leveraged Bitcoin purchase.
Global growth of crypto ETFs is evident
The launch comes just two weeks after T-Rex Group filed for a 2x leveraged MicroStrategy ETF, potentially the most volatile ETF in the United States.
If approved, it could see swings of up to 20 times the S&P 500, earning it the nickname “the ghost pepper of ETFs.” The filing underscores T-Rex’s commitment to offering high-risk, high-return financial products.
I wrote about the proposed 2x $MSTR The T-Rex ETF today and how, if approved, it would be by far the most volatile ETF ever seen in the US, the “ghost pepper” of hot sauce ETFs…and as such, it would likely find an audience given the real demand for adrenaline right now. pic.twitter.com/IpRA6j89Sw
— Eric Balchunas (@EricBalchunas) July 8, 2024
Meanwhile, Australia’s ASX has approved DigitalX’s Bitcoin Spot ETF marks a significant milestone for institutional investment in the region. DigitalX’s ETF will trade under the ticker BTXX, with 3iQ handling international distribution. This approval underscores the growing acceptance and integration of cryptocurrency ETFs in global financial markets.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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