Summary
- Volatility Shares said it has launched 2x leveraged ETFs with Cardano (ADA), Stellar (XLM) and Chainlink (LINK) as the underlying assets.
- The products are designed to deliver twice the price movement of the respective cryptoassets, and futures-based ETFs linked to the same assets were launched as well.
- The U.S. Securities and Exchange Commission (SEC) has maintained a cautious stance on higher-multiple leveraged products, urging issuers to refrain from launching 5x leveraged ETFs and raising concerns about the risks of 3x products.
Forecast Trend Report by Period
U.S. asset manager Volatility Shares has launched leveraged exchange-traded funds (ETFs) based on major altcoins.
According to Decrypt on the 1st (local time), Volatility Shares introduced 2x leveraged ETFs with Cardano (ADA), Stellar (XLM) and Chainlink (LINK) as the underlying assets.
The products are designed to deliver twice the price movement of the respective cryptoassets. Futures-based ETFs tracking the same assets were also launched.
Volatility Shares previously rolled out 2x leveraged ETFs linked to Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and XRP (XRP).
Leveraged ETFs use derivatives and borrowing structures to amplify daily returns, and have been spreading rapidly in tandem with rising demand for high-risk investments.
Sunny Sun, a marketing analyst at Volatility Shares, said, "This ETF launch marks a shift from broad market exposure to asset-specific strategies," adding, "They are primarily aimed at professional investors seeking concentrated exposure to specific crypto ecosystems."
Meanwhile, the U.S. Securities and Exchange Commission (SEC) has maintained a cautious stance on high-multiple leveraged products. It has recently asked issuers to refrain from launching 5x leveraged ETFs and has also raised risk concerns about 3x products.
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