New Bitcoin ETFs Target High-Conviction Traders
Rex Shares has introduced new Bitcoin ETFs that provide 200% long or short directional exposure to Bitcoin’s price volatility.
Key Points:
- Two new ETFs launched by REX Shares and Tuttle Capital Management
- T-REX 2X Long Bitcoin Daily Target ETF (CBOE: BTCL)
- T-REX 2X Inverse Bitcoin Daily Target ETF (CBOE: BTCZ)
- ETFs use financial derivatives for 2x leveraged or inverse exposure to spot BTC
In the previous week, Bitcoin ETFs have experienced significant inflows following a market pullback. Over $650 million has flowed into BTC ETFs since July 5.
REX Shares’ new ETFs add to their suite of “T-REX” products, which include leveraged exposure to tech giants like Apple, Nvidia, and Tesla.
Risks Associated with Leveraged ETFs:
- Underperformance compared to the underlying asset
- Constant leverage trap phenomenon
- Higher management fees
The new ETFs from Rex Shares have a management fee of 0.95%, higher than traditional spot BTC ETFs.
Despite the potential benefits of leveraged ETFs, they come with inherent risks and drawbacks that investors should carefully consider.