Leveraged ETFs are a popular financial product in the traditional finance market. In the crypto space, leveraged ETFs track the daily movement of an underlying crypto asset (e.g. BTC) with defined leverage times (e.g. 3x). Leveraged ETFs enable users to buy long or sell short for an asset within certain times. Take BTC3L (long) and BTC3S (short) leveraged ETFs as an example. BTC3L means 3x leverage long for BTC, while BTC3S means 3x leverage short. Suppose BTC rises by 1% on November 28th, correspondingly BTC3L will rise by 3% and BTC3S will drop by 3%, and vice versa. Put simply, a leveraged ETF is a product that provides users with exposure to higher leverages for both longs and shorts, so that users can utilize a smaller fund to earn greater yield when the market direction is right.
According to official data, the daily trading volume of MXC leveraged ETF just exceeded $400 million dollars for the first time ever, hitting a record high. Impacted by current market conditions, the leveraged ETF offering is rising in popularity, of which the XLM3L price has broken through 3.14x USDT, an increase of 123.99% in just 24 hours and 7.39x in the week. The prices of XRP3L, KSM3L, BCH3L, DASH3L and ETC3L have increased by 67.5%, 65.31%, 58.47%, 57.77% and 48.84% respectively in 24 hours. Needless to say, investors are seeing significant returns on their investments.
MXC leveraged ETFs are perpetual leverage products, anchoring a spot change. It adopts the rebalancing risk control and automatically compounds interest. This is done all without margin and liquidation rules, which is of a higher position utilization rate.
Recently, MXC Global made significant optimizations to their trading depth and experience with leveraged ETFs. These can be purchased right from the ETF tab on the MXC Global site. Director of Global Operations at MXC, Alex Zha commented on the recent go-live of these significant optimizations:
“We are delighted with our team’s hard work, and are proud to deliver these major changes to our ETFs. They are a significant step forward for MXC from a capabilities standpoint, and for the cryptocurrency economy as a whole.”
3x Leveraged ETFs for ZEN And ALPHA Cryptocurrencies
The daily management fee rate for ZEN3L/ZEN3S and ALPHA3L/ALPHA3S are 0.3% for each leverage, which will only be charged at 00:00 (UTC+8) each day. If you do not have a position at that point in time, no management fee will be charged. To meet the trading demand of various users, MXC just launched ZEN3L/ZEN3S and ALPHA3L/ALPHA3S leveraged ETFs on November 24th. The details are as follows:
- ZEN3L - 3x leverage long for ZEN
- ZEN3S - 3x leverage short for ZEN
- ALPHA3L - 3x leverage long for ALPHA
- ALPHA3S - 3x leverage short for ALPHA
The daily management fee rate for ZEN3L/ZEN3S and ALPHA3L/ALPHA3S are 0.3% for each leverage, which will only be charged at 00:00 (UTC+8) each day. If you do not have a position at that point in time, no management fee will be charged.
4x Leveraged ETFs for BCH And XRP Cryptocurrencies
The daily management fee rate for BCH4L/BCH4S and XRP4L/XRP4S are 0.25% for each leverage, which will only be charged at 00:00 (UTC+8) each day. If you do not have a position at that point in time, no management fee will be charged. To meet the trading demand of various users, MXC just launched BCH4L/BCH4S and XRP4L/XRP4S leveraged ETFs on November 24th. The details are as follows:
- BCH4L - 4x leverage long for BCH
- BCH4S - 4x leverage short for BCH
- XRP4L - 4x leverage long for XRP
- XRP4S - 4x leverage short for XRP
The daily management fee rate for BCH4L/BCH4S and XRP4L/XRP4S are 0.25% for each leverage, which will only be charged at 00:00 (UTC+8) each day. If you do not have a position at that point in time, no management fee will be charged.
MXC Index Products And Grayscale Portfolio Index
MXC also just launched their Grayscale Portfolio Index on November 21st. It is available through the MXC iOS and Android App, and directly on their website.
MXC Index Products select cryptocurrencies that have a good level of liquidity as underlying assets. The weightings of the underlying assets in the index product are based on the proportion of their daily average trading volume in the last 30 days. As such, it can reflect the overall performance of the underlying asset class. Currently, MXC Index Product includes a major cryptocurrency index, a halving cryptocurrency index, a public chain index and DeFi asset index, and more.
MXC Index Products belong to an open-ended fund. It rises/falls based on the underlying asset portfolios. Users can earn an averaged profit of the asset class by buying/selling Index Product shares.
Advantages of MXC Index Products
Risk spreading: the MXC Index Product is a portfolio of different assets. Compared to trading a single cryptocurrency, the risk is much lower.
Energy saving: Investing in an index product amounts to investing in all the underlying assets that the index tracks with, freeing you from the tedium of finding worthy investable assets.
Risks Associated With Index Products
MXC’s Index Products are a form of derivative from digital assets. The net value tracks the rise/fall of the index. When the market experiences fierce fluctuation, investors should be cautious of the risks. Needless to say, invest with caution and do your homework first.
To learn more about MCX’s leveraged ETFs, be sure to check out some of their enablement resources below:
- Guide for Leverage ETF
2. Leveraged ETF Lecture
3. FAQ for Leveraged ETF
4. What is "Share Merging Mechanism"
Marcus Henry is an American Journalist with over 12 years working in the tech industry. He has been actively involved in the crypto community for the past three years and currently works out of Austin, Texas. He covers breaking news, writes perspective pieces and reflections, and conducts interviews with industry professionals and community members. Follow Marcus Henry on Twitter- @MarcusHenryHODL
Disclaimer: The information above does not constitute investment, financial, trading or any other sort of advice and you should not treat any of my content as such. I do not recommend the purchase, sale, or holding of any cryptocurrency or other product and/or service. Nothing I write about should be deemed as an offer to purchase, sell, or hold a cryptocurrency or other product or service. Please do your own research and consult a certified financial professional before making any investment decision.