T-Rex launches 2X Long and Short Bitcoin ETFs against ProShares.
ETFs focus on daily Bitcoin spot price for amplified gains.
Market watches T-Rex’s impact on ETF competition closely.
T-Rex is shaking up the increasingly popular world of Bitcoin ETFs, launching two new funds designed to double down on the cryptocurrency’s daily gains or losses.
These new offerings, the T-Rex 2X Long Bitcoin Daily Target ETF and the T-Rex 2X Short Bitcoin Daily Target ETF, are entering a field to directly compete with products from ProShares; the ProShares Bitcoin Strategy ETF (BITO) and the ProShares Short Bitcoin Strategy ETF (BITI).”
As shared by ETF enthusiast Eric Balchunas, these ETFs are set to directly compete with the ProShares Bitcoin Strategy ETF (BITO) and the ProShares Short Bitcoin Strategy ETF (BITI), which launched earlier this week.
Launching Today: T-Rex with 2x and -2x spot bitcoin ETFs which will challenge ProShares and VolShares, whose leveraged btc ETFs already have about $2b combined. That's how good the getting is in this category right now. pic.twitter.com/PfZALdSQUc
— Eric Balchunas (@EricBalchunas) July 10, 2024
The T-Rex ETFs will seek a 2x daily return on the spot price of Bitcoin for the Long ETF and a -2x daily return on the spot price of Bitcoin for the Short ETF. While T-Rex targets the spot price, ProShares’ offerings target a return on Bitcoin futures contracts with a 0.95% expense ratio. However, the expense ratio for the T-Rex ETFs was not specified at the time of writing.
Source: Eric Balchunas
The leveraged Bitcoin ETF market is a burgeoning one, rising significantly in a short time. Balchunas stated the sector has already garnered over $2 billion in combined assets under management between ProShares and VolShares. The arrival of T-Rex into the growing ETF domain indicates both strong investor demand and the increasing risk appetite for these types of funds.
As ETF enthusiasts await more details on the new fund, there are a few things to consider. First, the expense ratio of the T-Rex ETFs will be a crucial factor, as a lower expense ratio could give T-Rex a competitive edge over its established rival, ProShares. Next, market observers will compare the volatility of the T-Rex ETFs to that of ProShares’ offerings. It is important to note that T-Rex ETFs target the spot price of Bitcoin, making them more susceptible to market fluctuations than ProShares’ Bitcoin futures contracts.
Another crucial thing to note is the track record of the management team behind the T-Rex ETFs. Investors are more likely to trust a fund with a management team that has a proven track record of success.
Overall, the launch of the T-Rex ETFs is a significant development in the leveraged Bitcoin ETF market. It is important to note that leveraged ETFs are complex financial instruments and may not be suitable for all investors. Investors should carefully consider their investment goals and risk tolerance before investing in any leveraged ETF.
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