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Intro to Cryptocurrency Leveraged ETF

4 pointsby tmleealmost 4 years ago

1 comment

Bostonianalmost 4 years ago
As a former quant, I urge HN readers to stay away from this, except possibly to short it. A leveraged ETF on a volatile underlying such as crypto is forced to make large trades daily, chasing the market. A leveraged long ETF must buy/sell when the market is up/down on the day. This forced daily trading results in large costs to investors. Research has shown that leveraged ETFs underperform their daily benchmarks.