Volatility Shares has launched three new leveraged exchange-traded funds offering 2x daily exposure to Cardano, Stellar, and Chainlink. The firm, which established the first leveraged crypto ETF in the U.S. in 2023, also debuted traditional futures ETFs for the same assets. These products expand the suite of tools for sophisticated traders seeking amplified bets on specific cryptocurrencies.
Volatility Shares debuted three exchange-traded funds that amplify price swings for cryptocurrencies. The ETFs offer 2x exposure to Cardano, Stellar, and Chainlink, some of the largest altcoins with market caps of $9 billion, $6.3 billion, and $5.6 billion respectively.
The firm also debuted funds offering traditional exposure to futures for those same assets. This follows its previous establishment of 2x ETFs for Bitcoin, Ethereum, Solana, and XRP.
Leveraged ETFs have become increasingly popular, amplifying daily returns using derivatives and debt. In 2023, Volatility Shares debuted the first leveraged crypto ETF in the U.S., which tracks Bitcoin futures.
The firm’s 2x Bitcoin Strategy ETF has seen notable adoption since its launch. On average, around 13 million of its shares change hands each day, according to ETF Database.
“The debut of these six ETFs marks a strategic shift from broad market exposure toward granular asset exposure,” said Sunny Sun, a marketing analyst at Volatility Shares. “The target demographic for these ETFs consists of sophisticated traders seeking targeted exposure to specific digital asset ecosystems.”
Since U.S. President Donald Trump’s second term began, issuers have offered leveraged crypto ETFs for assets including Solana, XRP, and Dogecoin. This activity has occurred amid a more favorable regulatory environment.
The SEC has nonetheless signaled it has limits regarding such products. In a group call earlier this month, the regulator asked ETF issuers not to bring products to market offering 5x exposure to assets and indexes, per Bloomberg.
Late last year, the watchdog also sent warning letters to issuers interested in 3x leveraged funds. It expressed concern regarding how they measured associated risks.
Months before that, Volatility Shares had filed for 27 products offering 3x and 5x exposure. Those applications covered crypto and related stocks, such as Coinbase.
