LeverageShares Files for 2X Long Kraken ETF, Pioneering Leveraged Exposure to Private Crypto Exchange
LeverageShares, a European ETF issuer specializing in leveraged products, has submitted a groundbreaking filing for a 2X Long Kraken ETF. This marks the first attempt to create a leveraged instrument tied directly to a private cryptocurrency exchange ahead of Kraken's anticipated 2025 IPO.
The proposed fund WOULD deliver 200% of Kraken's daily performance through swap agreements with financial institutions, mirroring the structure of LeverageShares' existing 2X Long Adobe ETF. While Kraken lacks a native token and isn't yet publicly traded, the filing demonstrates growing institutional demand for crypto-adjacent exposure.
"What a country," remarked Bloomberg's Eric Balchunas, highlighting the innovative nature of the filing. The product would appeal to traders seeking amplified exposure to crypto market infrastructure plays, though leveraged ETFs carry compounding risks for long-term holders.
