These Bitcoin, Ethereum, and XRP ETFs plan to offer 5x leverage

As if crypto trading isn’t volatile enough, ETF manager hopes to launch Volatility Shares Bitcoin and other digital asset funds that would offer investors five times daily exposure to the asset class.

The long list of suggested funds includes Bitcoin, Ethereum, SolanaAnd XRP ETFs, as well as funds that offer greater exposure to crypto-related stocks, such as crypto exchange Coinbase and Bitcoin treasury companies Strategy and Tesla.

Typical ETFs give investors exposure to an asset – be it a security or a commodity – through shares that track its price and trade on stock exchanges.

A leveraged ETF holds debt to strengthen its position. The idea is that returns for investors can be greater than the asset being tracked, but losses can also be magnified – in this case, potentially five times greater.

Volatility Shares had already filed the paperwork with the Securities and Exchange Commission to get crypto ETFs on the market with triple exposure to the asset’s daily returns.

The company in March debuted two ETFs tracking Solana futures, including one with twice-daily exposure to SOL.

There are already leveraged crypto ETFs on the market: the Miami, Florida-based Defiance ETFs MSTX gives investors access to a leveraged position in Bitcoin Treasury Firm Strategy (MSTR) shares, amplifying profits (and losses) by 175%.

The SEC in January 2024 approved 11 Bitcoin ETFs After Ten Years of Saying No to Applications. The funds were launched by prestigious asset managers such as BlackRock and Fidelity and had the most successful launch in the history of ETFs, followed by Ethereum funds in the summer of last year.

Asset managers are now trying to get ETFs approved that provide exposure to altcoins, including top assets like Solana, XRP and Dogecoin – although a few have done so. already started trading.