BITX ETF

The 2x Bitcoin Strategy ETF suffers from significant contango and volatility decay, making it less effective for long-term Bitcoin exposure compared to simpler, low-cost Bitcoin ETFs like IBIT. BITX charges a high 1.85% expense ratio and has underperformed its promise, delivering only 1.5x Bitcoin's return due to decay issues. President Trump's potential 'Bitcoin Reserve' policy could boost Bitcoin prices, but simpler ETFs like IBIT are better for bullish investors without leverage risks.

Bitcoin's long-term potential is driven by unstable modern monetary policies, making it a strong hedge against fiat currency weaknesses. The 2x Bitcoin Strategy ETF is highly volatile and risky due to its 2x leverage, high expense ratio, and futures contango, making it unsuitable for long-term holding. Short-term speculation with BITX is possible, but sophisticated investors should consider direct futures, while unsophisticated investors should consider simpler ETFs.

Bitcoin's flash-crash in early August was followed by a strong recovery, the 2x leveraged ETF BITX more than doubled Bitcoin's performance over that time. September has historically been a poor month for Bitcoin, with only a 30% chance of positive returns and an average decline of 5.8%. More importantly, investment demand for BTC has been robust this year with over $20 billion in YTD capital flows into the asset.

We highlight a bunch of the best-performing leveraged equity ETFs from different corners of the market that are leaders in their segments for the first half.

BITX aims to provide investors with 2x the daily performance of Bitcoin futures through leveraged exposure, making it suitable for short-term trading but risky due to potential losses. Its 1.85% expense ratio and high risk underscore the need for active management and monitoring. Complexities, costs, and the BITX risk profile suggest alternative investments like MSTR or spot ETFs such as GBTC offer better long-term investments.

Over the last month, the top ten most shorted ETFs have attracted Inflows of $5.6B. As equity markets in the US continue to set record highs, investors appear to expect the bull market to continue. ETF flow data and securities finance short interest data remain key to understanding investor behavior.

These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

Wall Street displayed a mixed performance last week.

U.S. stocks are on track to post strong gains for the first quarter. Fed rate cut bets, stronger earnings, and the continued AI boom continue to fuel the rally in the stock market.