A new player has emerged in the US market with the introduction of a new Bitcoin ETF (exchange-traded fund) by T-Rex, an asset manager founded by Benjamin Cohen in 2012. This move puts T-Rex in direct competition with ProShares Bitcoin Strategy ETF (BITO) and VolShares BITX ETF.
T-Rex Unveils 2x Leveraged, Inverse Bitcoin ETF
According to the asset manager’s announcement on Wednesday and a analysis According to Bloomberg ETF expert Eric Balchunas, the T-Rex Bitcoin ETF is designed to give investors 2x leveraged exposure to the daily performance of BTC’s spot price. This means that the fund aims to deliver investment results that represent 200% of Bitcoin’s daily performance.
In particular, the new FNB aims to achieve this significant but riskier performance daily rather than over an extended period of time, which differs from Bitcoin ETFs managed by firms such as BlackRock, Fidelity or the Grayscale Bitcoin Trust (GBTC).
To achieve this, T-Rex has partnered with REX Shares and Tuttle Capital Management to launch two new products: the T-REX 2X Long Bitcoin Daily Target ETF (BTCL) and the T-REX 2X Inverse Bitcoin Daily Target ETF (BTCZ).
Scott Acheychek, COO of REX Financial, the parent company of REX Shares, emphasized the significance of the launch, declarant:
Bitcoin’s meteoric rise in 2024 has captured the attention of investors and traders around the world. By launching 2X leveraged and inverse Bitcoin Spot ETFs, we are equipping traders with powerful tools to capitalize on Bitcoin’s price movements like never before.
On the other hand, Matt Tuttle, CEO of Tuttle Capital Management, stressed the importance of venturing into digital assets as an important step in providing “cutting-edge” ETFs that meet the needs of modern investors.
Tuttle noted that these Bitcoin funds exemplify their commitment to innovation and pushing boundaries in the ETF landscape with their amplified exposure to both the upside and downside.
Volatility meets inflows
The price of Bitcoin has recently experienced significant volatility due to the persistence sales pressure German authorities, who liquidated the seized BTC assets.
However, the market has seen notable developments entries Over the past few days, Bitcoin ETFs offered by the world’s largest asset managers in the US market have kept the price of BTC above key support levels.
Bitcoin hit a weekly low of $54,000 on Monday as selling pressure intensified. The ETF market has nonetheless seen a recovery with substantial inflows of around $654 million over the past three trading days.
On Tuesday, a combined total of $216 million was invested in these Bitcoin ETFs, indicating a recovery. bullish sentiment among investors after seeing significant outflows over the past week that led BTC to hit a 6-month low of $53,500 on Friday.
Despite this, BTC reclaimed the $57,760 level on Wednesday, with $58,000 being the next major resistance for the market’s largest cryptocurrency.
Featured image of DALL-E, chart from TradingView.com
