European investors will soon be able to place larger, leveraged bets on Ethereum and bitcoin through new exchange-traded products from Leverage Shares, which will offer short and long 3x leveraged options for both assets on the Swiss stock exchange SIX.
The offerings will allow investors to add risk amid a volatile time in the markets, characterized by weekly declines in Bitcoin and Ethereum, which are now down 11.8% and 12.5%, respectively.
“Leverage Shares will launch the world’s first 3x and -3x Bitcoin and (Ethereum) ETFs in Europe next week,” Bloomberg ETF analyst Eric Balchunas posted on X on Friday. “The timing is either really good or really bad, depending on your point of view.”
Balchunas expects the products to begin shipping next week, but a Leverage Shares representative did not immediately respond. Decipher request for comment.
The latest leveraged products join a range of global offerings that provide investors with expanded and therefore riskier investment opportunities. Last month, Volatility Shares ETF manager requested offer up to 5x leveraged ETF products about Bitcoin, Solana and XRP to US investors.
Unlike traditional crypto ETFs, which track the underlying price of an asset like Bitcoin or Ethereum, leveraged ETFs aim to provide higher returns based on the activity of the tracked asset.
And they come for more than just the main crypto assets.
On Thursday, 21 shares introduced a 2x leveraged Dogecoin (DOGE) ETF—TXDD—which essentially allows investors to take a long position in the leading meme coin and potentially earn 2x the token’s daily return, minus fees and expenses.
Product launches occur as a result of The record liquidation of $19 billion of cryptocurrencies waterfall that first fueled the recent market slowdown on October 10.
Like the rise of leveraged exchange traded products, Criminals market and leverage products in the chain. It has also become more popular, potentially creating a risk to the long-term health of the market, some industry experts said. Decipher last month.
Do criminals and leverage create systemic risk in crypto markets? Experts say
Industry veterans like Fundstrat CIO and BitMine Immersion Technologies President Tom Lee continue to suggest that the recent market chaos is still part of a broader recalibration of the events of October 10. However, Lee is Still calling for an Ethereum supercycle.
Bitcoin is down almost 13% in the last week, recently trading at $84,065. Ethereum has fallen harder in the same time period, falling 14% in the last seven days and changing hands at $2,731.
Bitcoin fell to nearly $81,000 on Friday, marking a new seven-month low for the leading cryptocurrency and sparking a market crash that led to more than 2.2 billion dollars value of cryptocurrency settlements.