Volatility at its peak: 3x BTC ETFs approved

[Charles-Tim]

Obviously many people will hate it, but personally, a Bitcoin 3x ETF is better than trading perpetual futures on leverage, WHICH could liquidate you.

This is what I am about to post, people can trade futures on some exchanges up to 100x, 125x, 150x, 200 and 500x. The 509x has been discussed before on this board. But if it is argued that that is derivatives, it is still better than 10x on margin trading which use bitcoin spot market price. But I am expecting 10x for the ETF later.

[alani123]

But bitcoin ETF 3X is very risky, just like those products like BTC 3X long on exchanges that are listed under the spot market. You can say it will give more liquidity, but the first thing you should think about is liquidation and how risky they are. I have been seeing some news about it recently I think in August or early September.

Leveraged ETFs aren't meant for the average investor.
They're not even meant to be held more than 1 trading session because they reset at the end of the day. Meaning that it's more of a trading tool for expert account managers. You buy them at some point in the trading session and sell them at another, or short them, if you believe there's going to be some moves. The fact that bitcoin markets are open 24/7 while stock market's aren't makes these even more risky for that matter though.

Nobody with the ability or knowledge to buy actual BTC should actually touch these instruments imo.

[Wind_FURY]

But bitcoin ETF 3X is very risky, just like those products like BTC 3X long on exchanges that are listed under the spot market. You can say it will give more liquidity, but the first thing you should think about is liquidation and how risky they are. I have been seeing some news about it recently I think in August or early September.

Leveraged ETFs aren't meant for the average investor.

They're not even meant to be held more than 1 trading session because they reset at the end of the day. Meaning that it's more of a trading tool for expert account managers. You buy them at some point in the trading session and sell them at another, or short them, if you believe there's going to be some moves. The fact that bitcoin markets are open 24/7 while stock market's aren't makes these even more risky for that matter though.

Nobody with the ability or knowledge to buy actual BTC should actually touch these instruments imo.

But if it actually follows the trend of the underlying, doesn't that prove that it could be held for a lot more than one trading session?

Although I agree that it's NOT meant for PLEBS like us, but it's still better than a perpetual futures leveraged trade.