Title: Leverage Shares Introduces Bitcoin and Ethereum Funds in Europe Amid Market Downturn
Author: Christian Borjon Valencia
Originally published on FXStreet
Leverage Shares, a London-based provider of Exchange-Traded Products (ETPs), has announced plans to launch two new crypto-focused investment funds in Europe, specifically targeting Bitcoin and Ethereum. These innovative investment vehicles are being introduced despite the current market downturn and growing investor concerns surrounding the volatility and overall sentiment within the cryptocurrency sector.
The firm’s strategic move reflects both resilience and long-term optimism in digital asset adoption within institutional and retail investment markets. The timing raises eyebrows, coming at a moment of widespread disillusionment in the crypto landscape, marked by declining prices and questions over regulatory direction. While current conditions remain bearish, Leverage Shares’ decision could lay the foundation for increased accessibility and investor engagement in cryptocurrency products through traditional financial instruments.
Overview of the Launch
According to the announcement, Leverage Shares is listing two exchange-traded funds—one offering exposure to Bitcoin and the other to Ethereum. These funds are intended to be 1x long ETPs, which means they aim to replicate the daily performance of their underlying assets (BTC and ETH) on a one-to-one basis without utilizing leverage.
Key Components of the New Funds:
– Instruments: Exchange-Traded Products (ETPs)
– Assets: Bitcoin and Ethereum
– Leverage: None (1:1 tracking of underlying crypto movements)
– Market: European stock exchanges, including those in the UK, Germany, and France
– Regulation: Compliant with European securities and investment regulations
These investment vehicles will provide European investors with access to Bitcoin and Ethereum without needing to manage digital wallets or interact directly with crypto exchanges—a distinct advantage for traditional investors deterred by the complexities associated with crypto markets.
Context Behind the Announcement
Leverage Shares’ Bitcoin and Ethereum ETPs are being introduced during a turbulent time in the cryptocurrency market. The announcement coincides with a period of significant market correction, as both Ethereum and Bitcoin have experienced heavy sell-offs. Cryptocurrency market capitalization has seen billions in dollar value wiped out in recent months, driven by regulatory fears, collapsing digital asset firms, and a pervasive bearish sentiment across global financial markets.
Current Market Situation:
– Bitcoin’s value has dropped more than 60 percent from its all-time high in late 2021.
– Ethereum has declined over 70 percent from its peak, reflecting investor uncertainty regarding its transition to proof-of-stake and broader market concerns.
– Crypto exchanges such as FTX and Voyager have collapsed or entered bankruptcy, contributing to declining investor confidence.
– Central banks, particularly the US Federal Reserve, have shifted to aggressive monetary tightening, applying further pressure on risk assets including cryptocurrencies.
Despite this climate, Leverage Shares perceives an ongoing and unmet demand among European investors for institutional-style products that offer cryptocurrency exposure with traditional financial protections and custodial arrangements.
Investment Strategy and Purpose
The new ETPs from Leverage Shares aim to provide a straightforward and secure way for traditional investors to participate in the crypto ecosystem. By offering regulated exposure to cryptocurrencies through familiar financial structures, the company hopes to bridge the gap between the digital asset market and conventional capital markets.
Primary Goals of the ETPs:
– Offer simple, transparent access to Bitcoin and Ethereum price movements
– Eliminate the need for complicated digital wallet setups and private key management
– Enable investors to include crypto exposure in tax-advantaged accounts such as IRAs and pensions (where local regulation permits)
– Reduce counterparty risks by utilizing regulated custodians
– List on trusted and regulated European stock exchanges to ensure compliance and liquidity
For retail investors, this provides a user-friendly option to engage with cryptocurrencies. For institutional investors, it represents a regulated pathway to diversify portfolios without incurring the operational risks often associated with direct crypto investments.
Comparisons to Existing Crypto Investment Vehicles
While cryptocurrency ETPs are not new to the European market, they remain relatively underutilized compared to their North American
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