Leveraged ETF Launches Amid Coinbase Stock Slump
A new exchange-traded fund (ETF) offers investors a way to trade Coinbase’s stock volatility without directly owning shares.
Despite a decline in crypto-related stocks, Leverage Shares by Themes has introduced a new ETF tied to Coinbase (COIN), the largest U.S.-based cryptocurrency exchange.
The Leverage Shares 2X Long Coinbase Daily ETF (COIG) aims to provide twice the daily return of Coinbase’s stock, catering to traders looking for amplified exposure. With an expense ratio of 0.75%, the ETF is now available on Nasdaq, according to a press release.
The launch comes at a turbulent time for the crypto market. Bitcoin (BTC) has dropped roughly 19% over the past three months, falling from above $105,000 to around $84,000. Meanwhile, Coinbase’s stock has fared even worse, plunging nearly 42% over the same period.
This ETF gives traders a high-risk, high-reward opportunity to capitalize on Coinbase’s price swings without holding shares directly.
Single-stock leveraged ETFs—both long and short—are typically used for short-term trading due to the risks associated with daily compounding. These funds can generate significant gains or losses, depending on sharp moves in the underlying stock price.
