Leveraged Coinbase ETF Debuts Despite Crypto Stock Slump

A newly launched exchange-traded fund (ETF) offers traders a high-risk, high-reward way to bet on Coinbase’s stock swings.

Leverage Shares by Themes has introduced the 2X Long Coinbase Daily ETF (COIG), designed to double Coinbase’s daily stock returns. The fund, listed on Nasdaq, comes with an expense ratio of 0.75%, per a company statement.

The launch coincides with a challenging period for the cryptocurrency sector. Bitcoin (BTC) has plunged 19% over the past three months, sinking from above $105,000 to around $84,000. Meanwhile, Coinbase stock has fared even worse, dropping 42% during the same timeframe.

Despite the market downturn, the COIG ETF aims to attract traders looking to profit from Coinbase’s stock volatility without holding shares directly.

Leveraged single-stock ETFs, including both long and short variations, are typically used for short-term trading. Due to their daily compounding structure, these ETFs can magnify both potential gains and losses, making them a risky but potentially lucrative tool for active traders.