The proposed funds aim to provide investors with 1.25 times leveraged exposure to amplify the price movements of bitcoin and ether. In a Feb. 4 release, the firm said it would rely on cash borrowing, rather than derivatives, for leverage.
Also, LBIT would invest in the Evolve Bitcoin ETF (TSX: EBIT), while LETH would invest in the Evolve Ether ETF (TSX: ETHR), the release noted.
There are several asset managers in the U.S. who offer leveraged crypto ETFs, but they typically rely on financial derivatives to offer leveraged exposure to cryptocurrencies.
While these leveraged funds seek to deliver amplified returns on bitcoin and ether investments, they could deliver amplified losses during a bear market.
Evolve’s announcement comes after Canada-listed crypto ETFs reported net redemptions in 2024. Investment fund analysts have chalked this up to investors switching to U.S.-listed crypto ETFs, which were only introduced…
