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Why do such absurdities still happen now?
Leverage Shares to launch Bitcoin and Ethereum funds in Europe amid market collapse
Leverage Shares plans to launch its 3x Bitcoin and Ethereum exchange-traded funds (ETFs) in Europe.
The ETFs, scheduled for launch next week, will offer investors leveraged exposure at three times the price of Bitcoin and Ethereum.
The proposed launch comes amid a continued downward trend in the cryptocurrency market.
Leverage Shares plans to launch leveraged crypto ETFs next week
Reports indicate that Leverage Shares is looking to launch the first exchange-traded fund of its kind offering 3x leverage on Bitcoin and Ethereum, according to Bloomberg ETF analyst Eric Balchunas in a post on X on Friday.
The products include 3x long and 3x short leveraged funds for both assets, with the launch expected next week on the Swiss SIX Exchange.
This move represents an expansion of Leverage Shares’ leveraged product portfolio, providing investors with new tools to capitalize on cryptocurrency market movements. The company already offers similar products for several stocks, including Apple, Tesla, Facebook, Amazon, and others.
This is not the first time a company has planned to launch triple-leveraged crypto ETFs. Defiance Investments proposed a similar suite of leveraged crypto ETFs in a filing with the U.S. Securities and Exchange Commission (SEC) in October. The filing included 49 funds that would offer investors triple-leveraged and inverse-leveraged exposure.
These funds would provide triple the daily return (whether long or short) for exposure to Bitcoin, Ethereum, Solana, crypto-focused stocks, tech stocks, and gold.
This move comes amid a continued downturn in the crypto market, with both Bitcoin and Ethereum down 21% and 26% so far in November. Bitcoin is trading just below $84,000, while Ethereum has dropped to $2,700 amid strong headwinds over the past week.
Launching leveraged crypto ETFs may be risky due to the volatile nature of crypto assets. Market participants have expressed concern about the potential impact of these funds on investors, noting that exposure to high leverage levels could lead to instant liquidations during periods of extreme volatility.
Eric Balchunas also mentioned in his post that "the timing is either really good or really bad depending on your point of view."
From my perspective, this news is misleading, aiming to reassure small traders—the largest segment in the crypto trading market—to siphon off whatever shares remain.