Leveraged Stocks have launched a new Exchange-Taded Fund (ETF) related to cryptocurrency exchange Coinbase (COIN) stocks registered with NASDAQ despite the recession of crypto-related stocks.
The leverage shares a double-length Coinbase Daily ETF (COIG), designed to provide daily return rates twice the Coinbase stock price, amplifying traders’ exposure to the largest cryptocurrency exchange in the US. According to a press release, ETFs with an expense ratio of 0.75% are listed in the NASDAQ.
The launch came amid a slump in the key cryptocurrency market, where Bitcoin (BTC) fell by about 19% until Bitcoin (BTC) reached $84,000 over the past three months. Coin’s stocks lost almost 42% of their value during the same period, with performance worsening.
The new ETF allows investors to take advantage of Coinbase’s stock performance volatility without directly holding the stock.
These types of single stock leveraged ETFs are used for short-term trading, both on both long and short sides, due to the high level of risk associated with daily compounding. Both these types of profits and losses are amplified when the underlying stock price moves significantly.
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