Leveraged ETFs Ride Virtual Asset Rebound Amid Dollar Weakness
Demand for investment in virtual assets is spreading beyond cryptocurrencies to leveraged exchange-traded funds (ETFs), particularly those centered on Seo Hak-ant. According to data from the Korea Securities Depository, double-leverage ETFs with Bitcoin and Ethereum as underlying assets were among the top net purchases made by Seo Hak-ant over the past week.
The 2X Ether ETF (ETHU) saw a net purchase of $2,056,607, while the 2X Bitcoin Strategy ETF (BITX) and ProShares Ultra Bitcoin ETF (BITU) were purchased for $11,011,684 and $6,515,961, respectively. BITX uses the Bitcoin futures index as its underlying index, and BITU uses the Bitcoin spot price index.
The prices of virtual assets have been rising due to expectations that the U.S. government will expand bond purchases and weaken the dollar. This has attracted investors who expect to benefit from a weak dollar. As a result, funds are flowing rapidly into Bitcoin spot ETFs in the U.S. stock market.