GraniteShares, a well-known financial firm with over $10 billion in Assets under Management (AuM), is expanding its focus on crypto-linked Exchange Traded Fund (ETF) products. The New York-based firm recently filed for a new series of leveraged ETFs designed to tap into the world of crypto-focused companies. These funds aim to cater to bullish and bearish investors, amplifying daily returns through their innovative 2x long and 2x short structures. Crypto’s Heavyweights Under the GraniteShares ETF Spotlight At the heart of these new ETFs are some of the most influential companies in the crypto space. These ETFs include Riot Platforms , Marathon Digital, MicroStrategy, and Robinhood. Riot Platforms and Marathon Digital stand out as powerhouses in Bitcoin mining, boasting substantial Bitcoin reserves of 17,429 and 44,394 units, respectively. MicroStrategy leads the pack with an unmatched 439,000 Bitcoin holdings. While Robinhood continues to serve as a popular gateway for retail investors exploring stocks and cryptocurrencies. Leveraged ETFs: High Rewards, High Risks GraniteShares’ new funds are set to offer both 2x long and 2x short options. This means investors can double daily gains when stocks rise and amplify losses if they fall. For example, if Riot Platforms’ stock increases by 1%, the GraniteShares 2x Long RIOT ETF would rise by 2%. Conversely, a 1% drop in stock price leads to a 2% loss in the 2x short fund. This high-reward, high-risk approach has attracted attention, especially with the surge in crypto and stock markets this year. Leveraged ETFs like T-Rex 2x Long MSTR Daily Target fund (MSTU) and Defiance 2x Long MSTR ETF (MSTX) have outperformed expectations. They have raked in 308% and 253% returns, compared to a 150% rise in MicroStrategy’s stock over the past three months . However, when markets turn bearish, the losses can be substantial. In the last 30 days, MicroStrategy’s stock dropped by 24%, while MSTU and MSTX fell by over 50%. Historical data highlights the risks of leveraged funds. In 2022, the ProShares UltraPro QQQ ETF, a 3x leveraged Nasdaq 100 tracker, plummeted by 79%. This sharp decline came as the index itself dropped by 32%. A Competitive Crypto ETF Landscape GraniteShares is entering an increasingly competitive ETF market. Unlike traditional funds, GraniteShares’ ETFs are designed for investors seeking to capitalize on short-term trends rather than long-term holds. These ETFs fit well with the risky and unpredictable nature of the crypto market. Leveraged ETFs are just one part of the trend as firms explore new crypto-focused financial products. Companies like YieldMax have taken a different approach by launching covered call ETFs. These funds invest in stocks and sell call options to generate monthly income for investors. Products like MARA Option Income ETF and Coin Option Income ETF have gained popularity by providing stability in the volatile crypto market. The post GraniteShares Target RIOT, MARA, MSTR, and HOOD With New ETFs appeared first on TheCoinrise.com .
