Traders working in traditional financial markets have been given the opportunity to open long and short positions in BTC with twice the leverage.
Investment management firms REX Shares (REX) and Tuttle Capital Management (TCM) launched two new exchange-traded funds (ETFs), the T-REX 2X Long Bitcoin Daily Target ETF (BTCL) and the T-REX 2X Inverse Bitcoin Daily Target ETF (BTCZ). These funds are designed for experienced investors, allowing you to capitalize on BTC price movements in a similar way to using 2x leverage.
What the new funds are all about:
- The T-REX 2X Long Bitcoin Daily Target ETF allows holders to earn a return equal to twice the daily increase in the price of BTC. That is, if BTC rises 1% in a day, the fund’s shares will rise 2%.
- The T-REX 2X Inverse Bitcoin Daily Target ETF allows holders to earn income equal to twice the inverse of the BTC price change. That is, if Bitcoin quotes fall 1% in a day, the fund will grow 2%. Conversely, if the BTC price rises by 1%, the fund will lose 2%.
Despite the fact that the assets are based on spot BTC quotes, the basis used is not the asset itself, but its derivatives — swaps and futures. BTCL and BTCZ are already available to market participants on the Chicago Board Options Exchange (Cboe).
The new investment products were added to the T-REX ETF series, which also includes similar financial instruments based on stocks of large-cap technology companies such as Apple (AAPL), Nvidia (NVDA) and Tesla (TSLA). REX Shares’ assets under management (AUM) topped $5 billion in June, and T-REX funds are up $1 billion since last year.
The new REX Shares cryptocurrency ETFs charge a 0.95% management fee. In comparison, the commission of spot Bitcoin ETFs will average about 0.2% after the promotional discounts expire. As a reminder, spot Bitcoin ETFs were launched in the U.S. in early 2024 and, as of July 11, their total capitalization already exceeds $70 billion, according to Blockworks.
Сообщение Leveraged Bitcoin Trading Tools Appear on TradFi Market появились сначала на CoinsPaid Media.
