One well-known ETF creator filed to launch several leveraged Bitcoin ETFs – this, as cryptocurrency investors eagerly await a potential approval by the U.S. Securities and Exchange Commission (SEC) on Bitcoin ETFs.
What Happened: If you haven’t heard the name Matthew Tuttle, chances are you’ve heard of the ETFs he helped launch — funds that took on Cathie Wood and Jim Cramer.
Tuttle, who is the CEO and Chief Investment Officer of Tuttle Capital Management, launched the AXS Short Innovation Daily ETF (NASDAQ:SARK) in November 2021, which seeks to have an inverse return from Wood’s Ark Innovation ETF (NYSE:ARKK). The investment, in layman’s terms, ‘shorts’ or bets against other funds.
Tuttle made headlines again with the launch of the Inverse Cramer ETF (BATS:SJIM) in March 2023, which seeks to have an inverse return from Cramer’s stock recommendations made on “Mad Money,” CNBC programming and his tweets.
Earlier this week, Tuttle filed for six new Bitcoin ETFs. These are leveraged ETFs and inverse ETFs seeking to offer increased returns to investors based on the performance of the Bitcoin ETFs, which will track the performance of Bitcoin (CRYPTO: BTC).
“The Funds seek daily inverse leveraged or long leveraged investment results and are intended to be used as short-term trading vehicles,” the fund’s prospectus reads.
The new funds are meant for investors “who understand the potential consequences” of leveraged investment vehicles — not for non-active investors.
The new proposed Bitcoin ETFs are:
T-Rex 1.5X Long Spot Bitcoin Daily Target ETF
T-Rex 1.5X Inverse Spot Bitcoin Daily Target ETF
T-Rex 1.75X Long Spot Bitcoin Daily Target ETF
T-Rex 1.75X Inverse Spot Bitcoin Daily Target ETF
T-Rex 2X Long Spot Bitcoin Daily Target ETF
T-Rex 2X Inverse Spot Bitcoin Daily Target ETF
The leveraged ETFs will offer investors ways to invest in outsized gains or losses for Bitcoin ETFs. While leveraged and inverse ETFs aren’t for all investors, Tuttle says they have an important place in the market.
“They are a tool, just like stocks, bonds, etfs, mutual funds, options, etc.,” Tuttle told Benzinga. “Just like any tool some people will use them correctly and others won’t.”
Tuttle said that leveraged ETFs can be used by investors as an “alternative to options.”
“Unlike options, they can be…
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