Is bitx a leveraged ETF?

The BITX fund will be a leveraged ETF. Leveraged funds use debt or financial derivatives—in this case, Bitcoin futures—as leverage to amplify the returns of a benchmark index. That leverage can mean short-term gains for investors, but it can also lead to big losses.

What is a leveraged 2x ETF?

A leveraged 2x ETF allows customers to gain bitcoin exposure by only putting up half the value of the bitcoin. A prospectus filing said the ETF would correspond with the CME Bitcoin Futures Daily Roll Index.

What is a bitcoin ETF?

A Bitcoin ETF is an exchange-traded fund comprised of bitcoin or assets related to Bitcoin's price. They are traded on a traditional exchange instead of a cryptocurrency exchange. Theoretically, bitcoin is purchased by the company, securitized, and sold or traded on an exchange.

What is leverage trading in Bitcoin?

Leveraged trading is the use of debt to gain more exposure to an investment. Leveraged Bitcoin trading gives investors more upside or downside. Leveraged investments can become worthless if they get margin called. Bitcoin markets are more volatile because of leveraged positions. What Is Leverage Trading?