• REX Shares has announced the launch of the T-REX 2X Long Bitcoin Daily Target ETF which will offer investors a 200% exposure to BTC’s daily performance.
• The company also announced an inverse ETF providing -200% exposure, making them the two most volatile ETFs in the US market and targeting risk-tolerant traders.

The pursuit of outsized gains in the crypto market is set to take a fresh twist with the launch of America’s most volatile Bitcoin ETFs. Launched by REX Shares, the two offer 2X exposure to the top crypto and allow traders to capitalize on price swings on a previously impossible scale.

RES Shares announced the T-REX 2X Long Bitcoin Daily Target ETF and the T-REX 2X Inverse Bitcoin Daily Target ETF this week.

The two ETFs, launched in partnership with Tuttle Capital Management, will offer a 200% and -200% exposure to Bitcoin’s daily performance, respectively. Unlike the spot ETFs that have taken off this year, these two new products will not hold BTC directly, and will instead rely on derivatives to deliver the leveraged or inverse exposure to the crypto.

Risk-heightened ETF products are not new for REX Shares. The company offers other leveraged ETFs in the stock market under its T-REX suite catering to popular stocks like Apple and Nvidia. As of June this year, the company’s products hit $5 billion in assets. In particular, its T-REX products surpassed a billion dollars.

Leveraged ETFs are popular in the financial services market. Essentially, they allow a trader to multiply his investment in an asset, and in turn, make more from any investment. However, they can be a money trap for inexperienced traders as the losses are also magnified and investment can be wiped out in minutes.

In crypto, leveraged ETFs and futures are even riskier than in the overall market. According to one study, leverage in the crypto space is designed for very short-term periods, like a single day, and when this period is exceeded, “leveraged ETFs may paradoxically fall in value despite gains in the underlying asset.”

The Age of Bitcoin ETFs

Despite all the risks that come with leveraged Bitcoin ETFs, experts believe that the new T-REX products will be popular on Wall Street. Bloomberg’s ETF specialist Eric Balchunas noted last week that such a product “would likely find an audience given the real demand for adrenaline out there right now.”

REX Financial COO Scott Acheychek also believes that the new ETPs will be a success. He stated:

Bitcoin’s meteoric rise in 2024 has captured the attention of investors and traders worldwide. By launching 2X leveraged and inverse Spot Bitcoin ETFs, we’re arming traders with powerful tools to capitalize on Bitcoin’s price swings like never before.

Jumping on the Bitcoin ETF bandwagon is a no-brainer for most financial companies today. As we reported on Monday, spot BTC ETFs recorded $143.1 million in inflows despite market volatility. And it’s not just Bitcoin, with experts predicting that the upcoming Ethereum ETFs will hit $15 billion while others say they could rack up at least 33% of the over $50 billion Bitcoin products have accumulated.

Meanwhile, Bitcoin trades at $58,671, gaining just over 2% in the past day as most cryptos recorded slight upticks.

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