Here's what happened when the 3x Bitcoin ETF got approved and a wave of traders treated it like leveraged $BTC they could just hold.
The pain shows up later. You are right on direction, $BTC is even slightly green, and the position is still down because the product resets every day and chop destroys the compounding.
Most coverage of the SEC move focused on access and ignored the structure. These funds target three times the daily return, not three times the monthly or yearly return. In crypto that distinction matters. Sideways weeks are common. Each daily rebalance in a non-trending tape quietly erodes the value even when the underlying is not falling. That is the part almost nobody is talking about.
I have watched people pull capital out of $USDT and park it here as if the extra leverage is free. It is not free. It is paid for in decay if you overstay. This is a trading instrument, not a savings vehicle. The first real period of range-bound action will make that obvious.
Where do you think this product actually gets used once the initial excitement fades?
#SECApproves3XBitcoinETF #BTCFallsBelow #FedMinutesFocusOnOctoberPause
The pain shows up later. You are right on direction, $BTC is even slightly green, and the position is still down because the product resets every day and chop destroys the compounding.
Most coverage of the SEC move focused on access and ignored the structure. These funds target three times the daily return, not three times the monthly or yearly return. In crypto that distinction matters. Sideways weeks are common. Each daily rebalance in a non-trending tape quietly erodes the value even when the underlying is not falling. That is the part almost nobody is talking about.
I have watched people pull capital out of $USDT and park it here as if the extra leverage is free. It is not free. It is paid for in decay if you overstay. This is a trading instrument, not a savings vehicle. The first real period of range-bound action will make that obvious.
Where do you think this product actually gets used once the initial excitement fades?
#SECApproves3XBitcoinETF #BTCFallsBelow #FedMinutesFocusOnOctoberPause