Leverage Shares Expands to Europe With New 3x BTC and ETH Exchange-Traded Funds

• Leverage Shares will launch the first 3x and -3x leveraged Bitcoin and Ethereum ETFs in Europe despite high market volatility.
• The move comes as BTC and ETH fall over 20% this month and retail investors withdraw around $4 billion from spot ETFs.

Leverage Shares is reportedly preparing to launch the first-ever 3x leveraged exchange-traded products tied to Bitcoin and Ethereum. Bloomberg ETF analyst Eric Balchunas updated the crypto community on this development through his post on the X platform.

The products are expected to debut this week on the Switzerland-based SIX Exchange, expanding Leverage Shares’ existing suite of leveraged offerings. The firm already provides similar structured products for tech giant equities, including Apple, Tesla, Amazon and Meta.

This is not the first attempt to introduce leveraged crypto ETFs. In October, Defiance Investments filed with the U.S. Securities and Exchange Commission (SEC) seeking approval for a lineup of 49 leveraged and inverse leveraged ETFs. The proposal included products offering 3x exposure to Bitcoin, Ethereum, Solana, crypto-related equities, technology stocks and gold.

Sailing Through BTC, ETH, and Crypto Market Volatility

The development comes amid worsening market conditions for cryptocurrencies. Bitcoin and Ethereum have fallen 21% and 26% respectively in November so far, with BTC trading below $84,000 and ETH near $2,700.

Crypto analyst Ted Pillows has issued a cautionary outlook for Bitcoin, noting that BTC is on track to close its second consecutive weekly candle below the 50-week Exponential Moving Average (EMA-50).

According to Pillows, similar technical breakdowns occurred in 2018 and again in 2022, both of which were followed by additional declines of roughly 50%.

Retail investors have withdrawn approximately $4 billion from spot Bitcoin and Ethereum exchange-traded funds (ETFs) this month. Analysts at JPMorgan noted that Bitcoin’s decline below their estimated production-cost support level of $94,000 has intensified selling pressure among non-crypto-native retail ETF holders.

Despite this trend, JPMorgan said that market deleveraging in perpetual futures appears to have stabilised since October. At the time of writing, Bitcoin (BTC) is trading for $86,000 after a marginal dip in the last 24 hours. The digital asset has shed nearly 10% in the past 7 days as investors’ confidence falls.