TL;DR
- The four new Bitcoin and Ether ETPs will be listed on the SIX Swiss Exchange, expanding their range of leveraged products.
- The launch occurs as retail investors withdraw approximately $4 billion from spot crypto ETFs.
- Analysts point out that the arrival of the leveraged products comes at a time of sharp price correction in Bitcoin and Ether.
LeverageShares, the asset manager, is set to make history next week with the launch of what Bloomberg Intelligence describes as the world’s first 3x leveraged crypto ETFs (or ETPs) for Bitcoin and Ether in Europe.
Bloomberg Intelligence analyst Eric Balchunas reported that the firm will introduce four new products to the market: 3x long and –3x short vehicles for both Bitcoin and Ether. These financial instruments, which use derivatives and debt to amplify the daily returns of the underlying asset, will be listed on the SIX Swiss Exchange.
The launch expands LeverageShares’ list of leveraged vehicles, which already includes products tied to sectors such as semiconductors, artificial intelligence, and individual stocks.
The Bet on Volatility: Strategic or Risky Timing?
A debate has arisen in the financial community regarding the timing chosen for the debut. Balchunas noted that the timing is “either really good or really bad, depending on your perspective,” given the current market situation. This backdrop includes a sharp correction in the cryptocurrency market and decreasing demand for exchange-traded funds.
The capital flow out of spot crypto ETFs is dramatic. JPMorgan asserts that retail investors have withdrawn around $4 billion from spot Bitcoin and Ether ETFs so far in November, a figure that already surpasses the record outflows registered in February.
The bank’s analysts indicate that Bitcoin’s drop below its estimated production cost, seen as a support level of $94,000, has accelerated selling by non-native crypto retail holders.
While traditional markets also show weakness (the Vanguard S&P 500 ETF has fallen 5% from its October peak), retail investors have injected about $96 billion into equity ETFs this month, including leveraged stock products.
Nevertheless, cryptocurrencies are being hit harder: Bitcoin has descended approximately 35% from its early October high, above $126,000, and Ether has fallen more than 43% over the same period.
In this context of extreme volatility, LeverageShares’ launch offers European investors a highly speculative tool to seek gains from both upward and downward movements. However, its leveraged nature also carries a significantly higher risk of rapid losses, amplifying the already high instability of the crypto market.
