Key Highlights
- LeverageShares is launching Europe’s first 3x and –3x bitcoin and ether ETFs next week.
- The launch comes as Bitcoin drops below $90k and Ethereum below $3,000
- Crypto ETF demand is down $4 billion in November, while equity ETFs are seeing $96 billion in inflows.
LeverageShares is set to launch Europe’s first 3x and –3x bitcoin and ether ETFs next week. The products will be listed on Switzerland’s SIX exchange, marking a major move in the crypto investment space.
The new lineup will include four ETPs: 3x long and –3x short versions for both bitcoin and ether. These ETFs are a special type of fund that amplify daily returns by using derivatives and debt, which can make profits bigger but also increase risk. Unlike regular ETFs, they are designed to deliver multiple times the daily performance of their underlying asset.
This is coming as retail demand for crypto ETFs has fallen sharply recently. Around $4 billion has been withdrawn from bitcoin and ether spot ETFs so far in November. This is already higher than the record outflows seen in February.
Bloomberg Intelligence analyst Eric Balchunas highlighted the timing of the launch on X, calling it “either really good or really bad depending on your POV.”
ETFs’ launch amid market downturn
The high-risk ETPs, which aim to deliver three times the daily performance of the underlying assets, will begin trading following a period of steep decline across the crypto space: Bitcoin and Ethereum both have failed to hold their support at $90K and $3,000.
Bitcoin’s recent price drop below $84,000 has made many regular investors sell their holdings. At the time of writing, Bitcoin is trading for $85,316, which is down 2.19% in the last 24 hours following a massive sell-off in the overall market. Ethereum is trading for $2,797, up 0.73% from the previous day but down 12% in the last seven days as the token follows the sell momentum, according to data from CoinMarketCap.
Crypto futures markets have started to stabilize after heavy deleveraging since October. This shows that while spot ETFs are seeing outflows, some parts of the market are finding balance. Meanwhile, equity ETFs are attracting a lot of money. Investors have added around $96 billion to stock ETFs this month, including leveraged stock products.
LeverageShares already offers leveraged ETFs tied to semiconductors, AI, blue-chip baskets, and single stocks. The launch of the 3x and –3x bitcoin and ether ETFs gives investors more options in a volatile market. Timing, as Balchunas said, will be critical for anyone deciding to invest.
Also Read: U.S. Investigates Chinese Bitcoin Miner ‘Bitmain’ Over Security Risks
