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T-Rex Launches Double-Leveraged Long and Short Bitcoin ETFs to Rival ProShares

source-logo  coinpedia.org 10 July 2024 14:45, UTC

T-Rex introduces new leveraged spot Bitcoin ETFs! Are you ready for 2x (double) and -2x (inverse double) exposure to Bitcoin’s price movements? These new ETFs are set to challenge big players like ProShares and VolShares, however market is cheering this move as it can potentially revive the down market.

Here’s what it means for you.

Launching Today: T-Rex with 2x and -2x spot bitcoin ETFs which will challenge ProShares and VolShares, whose leveraged btc ETFs already have about $2b combined. That's how good the getting is in this category right now. pic.twitter.com/PfZALdSQUc

— Eric Balchunas (@EricBalchunas) July 10, 2024

A New Entry: T-Rex Launches Leveraged Bitcoin ETFs

This information was shared by Bloomberg ETF analyst Eric Balchunas on X today. He revealed that these ETFs will offer 2x and -2x leverage on spot Bitcoin, meaning they aim to double the daily return of Bitcoin or provide the inverse (opposite) of double the daily return, respectively.

This launch poses a great challenge to existing leveraged Bitcoin ETFs by ProShares and VolShares, which already manage around $2 billion combined. However, the analyst believes that with a resurgence in Bitcoin this year, T-Rex ETFs help investors capitalize on volatility in the cryptocurrency market.

According to Balchunas, leveraged Bitcoin ETFs are profitable and currently, present a lucrative opportunity for new investors.

Crypto Implications

Having said that, T-Rex’s entry into this space adds new competition and options for investors, signaling the growing interest and acceptance of digital currencies by traditional financial institutions. Moreover, leveraged ETFs are designed for sophisticated investors who understand the risks and rewards associated with these products. The double-leveraged nature means that investors can potentially reap twice the returns but also face twice the risk. This makes them suitable for short-term trading rather than long-term holding.

The fact that T-Rex is now offering leveraged Bitcoin ETFs is part of a larger trend among banks to offer more advanced trading tools for the crypto market. The rising interest from institutions helps to legitimize digital currencies and opens up more ways for people to join the market.

Investors Stay Cautious

While leveraged ETFs can offer significant returns, they also come with high risks. Investors must be aware of the possible losses, especially in volatile markets like cryptocurrency. It is crucial for potential investors to fully understand the mechanics and risks of leveraged ETFs before investing.

However, what impact it will create is yet to be seen. Stay tuned with us in this developing story.