Would you hold a Bitcoin product that loses 9% when Bitcoin goes nowhere?
The SEC just approved the first 3x Bitcoin and Ether ETFs in the US. Six Volatility Shares funds got the green light on Oct. 2 — until now, American crypto funds were capped at 2x leverage.
But approval is not launch. The funds still need the SEC to declare their registration statement effective, and the order sets no deadline. They will hold futures, not actual BTC or ETH. And they reset daily: if Bitcoin rises 10% one day and falls 10% the next, it ends down 1% — while the 3x fund gains 30% then loses 30%, ending down 9%. Bloomberg's Eric Balchunas put it in six words: "Leveraged ETFs are for trading, not investing."
Would you trade a 3x crypto fund, or stay with spot?
$BTC $ETH
#Bitcoin #ETF #CryptoNews
The SEC just approved the first 3x Bitcoin and Ether ETFs in the US. Six Volatility Shares funds got the green light on Oct. 2 — until now, American crypto funds were capped at 2x leverage.
But approval is not launch. The funds still need the SEC to declare their registration statement effective, and the order sets no deadline. They will hold futures, not actual BTC or ETH. And they reset daily: if Bitcoin rises 10% one day and falls 10% the next, it ends down 1% — while the 3x fund gains 30% then loses 30%, ending down 9%. Bloomberg's Eric Balchunas put it in six words: "Leveraged ETFs are for trading, not investing."
Would you trade a 3x crypto fund, or stay with spot?
$BTC $ETH
#Bitcoin #ETF #CryptoNews
