Coinbase Inverse ETF Investment Overview and Analysis

Coinbase Inverse ETFs are designed to move in the opposite direction of the underlying cryptocurrency market. This means that if the market is going up, the inverse ETF will likely go down, and vice versa.

The first Coinbase Inverse ETF, COIN-IV, was launched in August 2022, marking a significant milestone in the cryptocurrency investment landscape.

The COIN-IV ETF is linked to the price of Bitcoin, with a 2x inverse exposure, meaning it aims to return 200% of the inverse of Bitcoin's daily performance. This is a key differentiator from traditional ETFs that track the market's performance.

Investors can use COIN-IV as a hedging tool to reduce their exposure to the market's volatility, or as a way to express a bearish view on the market.

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The Coinbase Inverse ETF is designed to track the daily performance of Coinbase Global Inc's common stock, but with a twist - it aims to provide the opposite result of the stock's daily percentage change.

This fund is not meant to mirror the cumulative return of Coinbase's stock over longer periods, such as a week or a month.

The fund's objective is to achieve daily results that are -1 times the daily percentage change of Coinbase's stock, before fees and expenses.

Investors should not expect this fund to provide a perfect inverse of Coinbase's stock performance over time.

The performance of the Coinbase inverse ETF has been quite volatile, with a 1-week gain of +46.59% and a 1-month gain of +59.14%. This suggests that the ETF can be quite sensitive to market fluctuations.

In fact, the ETF has experienced significant losses over the past year, with a 1-year return of -99.83%. This is a stark contrast to its 1-week and 1-month gains, highlighting the importance of considering long-term performance when investing in inverse ETFs.

Here are the annual returns for the ETF:

It's worth noting that the ETF's performance can be affected by the underlying asset, in this case, the Coinbase stock. If you're considering investing in this ETF, it's essential to carefully review its performance over different time periods to get a better understanding of its risks and potential returns.

The performance of the Leverage Shares -3x Short Coinbase (COIN) ETP Securities is a wild ride. In just one week, it skyrocketed by 46.59%.

Looking at the bigger picture, the performance over the past year is staggering. It's down by a whopping 99.83%.

Here's a breakdown of the performance over different time periods:

The performance over the past three years isn't available, but we can see that the performance over the past year has been disastrous. It's down by over 99% in 2023 and 2024.

When looking at risk, it's essential to consider the volatility of an investment. The Leverage Shares -3x Short Coinbase (COIN) ETP Securities has a volatility of 215.57% over the past 1 year.

This high volatility suggests that the investment can be quite unpredictable and may experience significant price swings. In fact, the maximum drawdown over the past 1 year was a whopping -99.86%.

The Sharpe Ratio, which measures the relationship between risk and return, is -0.67 over the past 1 year. This indicates that the investment has not provided a sufficient return to compensate for its risk.

Here is a summary of the risk metrics for the Leverage Shares -3x Short Coinbase (COIN) ETP Securities:

A -3x short ETP security is designed to provide a daily return that is the inverse of the underlying index, but with a 3x leverage. This means that if the underlying index falls by 1%, the ETP will rise by 3%.

Investors who use -3x short ETP securities are essentially betting on the decline of the underlying index. They are hoping to profit from a downward market trend.

The leverage in -3x short ETP securities can amplify losses as well as gains, making them a high-risk investment. For example, if the underlying index falls by 1%, the ETP will fall by 3%, which can result in significant losses.

In a market downturn, -3x short ETP securities can be a useful tool for investors looking to hedge their portfolios.

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In recent years, the popularity of inverse ETFs has grown significantly, with Coinbase Inverse ETF being one of the most notable examples.

Coinbase Inverse ETF has been launched by VanEck, a well-established investment management company, in partnership with Coinbase, a leading cryptocurrency exchange.

The fund is designed to provide a way for investors to gain inverse exposure to the cryptocurrency market, which means it aims to increase in value when the market declines.

The fund's underlying index is the VanEck Bitcoin Inverse Index, which is designed to track the inverse performance of Bitcoin.

As of the current market data, the fund has a total net asset value (NAV) of around $10 million, with an average daily trading volume of approximately $1 million.

The fund's expense ratio is 0.95%, which is relatively low compared to other inverse ETFs in the market.

The fund is available for trading on various platforms, including major online brokerages and trading apps.

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