Levered Stock-Crypto ETF Gambit Lands in Wall Street’s Go-Go Era
- Volatility Shares files for a host of derivatives-powered ETFs
- Correlated assets stoke concern as day traders gorge on risk
The filings are the latest sign that upstart ETF firms have plenty of newfangled trades left to pitch to speculative traders gorging on risk this year.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
It’s the latest high-octane offering from Wall Street’s rapidly growing line-up of risky ETF filings: Leveraged products that amp up exposures to large-cap stocks and crypto in one fell swoop – giving traders a way to double down on two of this year’s best-performing assets.
Florida-based Volatility Shares filed last week to launch a series of exchange-traded funds that seek to layer equity investments on top of digital tokens. The pitch is that by going all-in on derivatives, investors can get a $100 bet on US shares along with $100 of crypto exposure, for just a $100 outlay in total.