New Bitcoin ETFs Offer 200% long or short exposure to BTC’s price volatility. REX Shares launches T-REX ETFs, targeting high-conviction Bitcoin traders.
The two funds—the T-REX 2X Long Bitcoin Daily Target ETF and the T-REX 2X Inverse Bitcoin Daily Target ETF —do not hold spot BTC directly. Instead, they use financial derivatives to deliver 2x leveraged or inverse exposure to spot BTC.
Bitcoin ETFs have seen white-hot inflows in the past week amid a sharp pullback in spot prices spurred by multibillion-dollar BTC liquidations by Germany’s government and Mt. Gox, the defunct Japanese crypto exchange. Approximately $650 million has flowed into BTC ETFs since July 5,The ETFs bolster REX Shares’ existing suite of “T-REX” products, which include funds offering leveraged exposure to mega-cap technology stocks such as Apple , Nvidia and Tesla .
Leveraged ETFs tend to significantly underperform relative to the underlying spot asset as well as other strategies for gaining leveraged exposure to asset prices, according to a The report said this is partly due to a phenomenon known as the constant leverage trap, whereby funds are forced to buy low and sell high to maintain a fixed leverage target. Leveraged ETFs also tend to charge relatively high management fees, adding an additional drag on performance.Rex Shares’ two new ETFs each charge management fees of 0.95%.
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