Coinbase Stock Decline Can't Stop Highly Leveraged Long ETF Rollouts

Leverage Shares by Themes has introduced a new exchange-traded fund (ETF) designed to provide investors with amplified exposure to Coinbase (COIN) stock, despite ongoing turbulence in crypto-related shares.

Key Details:

The newly launched Leverage Shares 2X Long Coinbase Daily ETF (COIG) aims to deliver twice the daily return of Coinbase stock.

The ETF is listed on Nasdaq and carries an expense ratio of 0.75%.

This marks Leverage Shares' first crypto-focused ETF in the U.S., with additional offerings planned for 2025.

Market Context:

The ETF debuts amid a sharp downturn in the cryptocurrency market, with bitcoin (BTC) plunging approximately 19% over the past three months from over $105,000 to around $84,000. Coinbase stock has fared even worse, shedding nearly 42% of its value during the same period.

This leveraged ETF enables investors to capitalize on Coinbase’s stock volatility without directly holding shares. However, single-stock leveraged ETFs, such as COIG, are primarily suited for short-term trading due to the high risks associated with daily compounding. Profits and losses in these instruments are significantly amplified when the underlying stock experiences sharp price movements.

As market conditions remain uncertain, Leverage Shares is positioning itself for further expansion in the crypto ETF space, with more product launches anticipated later in 2025.