Investors Flock to Leveraged Bitcoin ETFs as Demand Soars
As the Bitcoin price attempts new all-time highs, there has been a surge in demand for investment vehicles offering leverage exposure to BTC. Leveraged futures-based exchange-traded funds, like VolatilitySharesโ 2x Bitcoin Strategy ETF (BITX), are experiencing significant inflows comparable to those of spot Bitcoin ETFs.
Bitcoin Futures ETFs In High Demand
Futures-based Bitcoin ETFs currently hold a record-high equivalent exposure of 83,300 tokens, while leveraged Bitcoin ETFs make up nearly 25% of the open interest on CME, one of the largest marketplaces for crypto derivatives. According to K33 Research, futures premiums on the platform have surged to around 20% amid the highest-ever open interest.
A note on Tuesday highlighted that the substantial increase in flows to 2x leveraged BTC ETFs demonstrates a significant demand for leveraged long exposure to BTC and aligns with the heightened risk appetite observed in BTC derivatives. The surge in open interest on CME is primarily driven by enormous inflows to the fund.
VolatilitySharesโ 2x fund now holds a Bitcoin equivalent exposure of 36,025 tokens, more than doubling its cryptocurrency under management within the first 11 days of March, according to K33 data. The growing interest in such funds has further spurred the launch of several new offerings.
Leveraged Bets In Demand
As investors flock to capitalize on the ongoing bull run in the crypto market, the demand for leveraged bets has become evident. US-based institutions often opt for regulated offerings like crypto futures on CME and spot ETFs from traditional asset managers.
In contrast, offshore entities frequently turn to options contracts on Deribit and perpetual futures without expiration dates on platforms like Binance, which are among the favored products for crypto traders. Funding rates for Bitcoin perpetual futures, a critical gauge for leverage in the crypto market, remain notably high across major offshore exchanges.
Deribit, a leading crypto options trading platform, has also witnessed record open interest and a notable uptick in bullish positions on Bitcoin.
Hot Take: Leveraged Bitcoin ETFs Gain Popularity Amidst Crypto Market Surge
With Bitcoin attempting new all-time highs, investors are showing increasing interest in leveraged investment vehicles. Leveraged futures-based exchange-traded funds (ETFs) like VolatilitySharesโ 2x Bitcoin Strategy ETF (BITX) are attracting significant inflows comparable to spot Bitcoin ETFs. This surge in demand highlights the growing appetite for leverage exposure to BTC.
Bitcoin Futures ETFs Experience Record-High Exposure
Futures-based Bitcoin ETFs currently hold a record-high equivalent exposure of 83,300 tokens. Moreover, leveraged Bitcoin ETFs make up almost 25% of the open interest on CME, one of the largest marketplaces for crypto derivatives. The platformโs futures premiums have surged to around 20% due to the highest-ever open interest.
The substantial increase in flows to 2x leveraged BTC ETFs demonstrates the demand for leveraged long exposure to BTC and reflects the heightened risk appetite observed in BTC derivatives. The surge in open interest on CME is driven by enormous inflows into these funds.
K33 Research data reveals that VolatilitySharesโ 2x fund now holds an equivalent exposure of 36,025 tokens, more than doubling its cryptocurrency under management within just 11 days of March. This growing interest has prompted the launch of several new offerings, including ProSharesโ five leveraged long and short BTC ETFs.
Leveraged Bets Gain Traction in Crypto Market
As the crypto market experiences a bull run, investors are increasingly seeking leveraged bets. US-based institutions prefer regulated options such as crypto futures on CME and spot ETFs from traditional asset managers. On the other hand, offshore entities often turn to options contracts on platforms like Deribit and perpetual futures without expiration dates on exchanges like Binance.
Funding rates for Bitcoin perpetual futures, which serve as a key indicator of leverage in the crypto market, remain significantly high across major offshore exchanges. Deribit, a prominent crypto options trading platform, has witnessed record open interest and a notable increase in bullish positions on Bitcoin.
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