As an analyst with a background in traditional finance and experience in following the cryptocurrency sector, I find this latest development in the ETF market intriguing. The availability of options trading for 2X leveraged and inverse Bitcoin ETFs is a significant step forward. This move caters to sophisticated investors who are looking for greater flexibility and strategic depth in their Bitcoin investments.
As the wider cryptocurrency market holds its breath in anticipation of approval for Bitcoin-backed Spot Ethereum Exchange-Traded Funds (ETFs), the option for trading leveraged and inverse Bitcoin ETFs has recently become available.
Latest ETF Products on The Block
Thursdays saw the unveiling of a fresh addition to the exchange-traded fund (ETF) offerings from REX Shares and Tuttle Capital Management, labeled as T-REX.
The firms announce that they have made these T-REX ETFs – specifically the T-REX 2X Long Bitcoin Daily Target ETF (BTCL) and the T-REX 2X Inverse Bitcoin Daily Target ETF (BTCZ) – available exclusively for sophisticated traders. In our view, this exclusive availability provides Bitcoin investors with an enhanced ability to maneuver in the market and apply more intricate strategies.
Significant, both ETFs serve distinct purposes for investors with a interest in Bitcoin. The BTCL is geared towards more aggressive traders, offering them the chance to amplify their daily returns if they hold a bullish view on Bitcoin. Conversely, BTCZ caters to traders who aim to profit from a decline in Bitcoin’s price. This setup allows for intricate trading strategies in both up and down markets.
Furthermore, Nate Geraci, President of ETFStore, emphasized that the new offering had no relation to a Bitcoin spot ETF.
So get this…
Options trading can be accessed for two-times leveraged and inverse Bitcoin exchange-traded funds (ETFs), yet it’s important to note that this feature is not supported for Bitcoin spot ETFs.
I’m serious.
— Nate Geraci (@NateGeraci) July 11, 2024
Rex Shares and Tuttle Capital Management notified their community in a message that they anticipate a significant increase in engagement from traders.
As a researcher, I would advise all traders to approach this exclusive opportunity with careful consideration. It’s essential that you thoroughly understand the distinct traits and potential risks involved in trading options for these specialized Exchange-Traded Funds (ETFs).
SEC Remains Silent on Spot Bitcoin ETF Options Trading
For some time now, various companies have been applying to the SEC for permission to launch spot Bitcoin ETFs.
Bitwise and Grayscale, among other companies, aim to list Bitcoin Exchange-Traded Funds (ETFs) for trading on exchanges and derivatives markets. This initiative was sparked by the New York Stock Exchange (NYSE), which recognized the significant interest in Bitcoin derived from the trading of options on Bitcoin Investment Trust (BITB) and Grayscale Bitcoin Trust (GBTC) among other similar instruments.
As a crypto investor, I’ve been keeping a close eye on the NYSE’s plan that’s currently under review by the SEC. The regulatory body requested public commentary on the proposed rule change towards the end of Q1, and they extended the review period until a later date without providing any updates regarding the offering so far.
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2024-07-11 23:26