REX Shares has launched two new Bitcoin ETFs designed for active traders seeking leveraged exposure to Bitcoin’s price movements. The T-REX 2X Long Bitcoin Daily Target ETF (BTCL) and the T-REX 2X Inverse Bitcoin Daily Target ETF (BTCZ) began trading on July 10, 2024.

These innovative ETFs offer three major characteristics:

• Track spot Bitcoin prices for more precise performance
• Can be traded through standard brokerage accounts—a combination that makes leveraged Bitcoin exposure more accessible and potentially more cost-effective for both retail and institutional investors
• Have a competitive 0.95% expense ratio

Product Overview

BTCL aims to deliver 200% of Bitcoin’s daily positive performance, while BTCZ seeks to provide 200% of the inverse of Bitcoin’s daily performance. The Fund does not seek to achieve its stated investment objective over a period of time other than a single/one trading day. These ETFs use financial instruments — primarily swaps based on spot Bitcoin prices — to achieve their stated objectives without directly holding Bitcoin. Investing in the Funds is not equivalent to investing directly in the ‘Reference Assets’. The Fund will not invest directly in the technology stocks/Bitcoin or directly short the technology stocks/Bitcoin.

Spot-Based Structure

Unlike some existing Bitcoin ETFs that use futures contracts, BTCL and BTCZ are designed to track spot Bitcoin prices. In fact, these are currently the only pure spot-based 2x leveraged Bitcoin ETFs available in the market. We believe this approach offers several advantages:

• Price Tracking: A potentially more precise reflection of Bitcoin’s real-time market movements — crucial for leveraged products.
• Cost Structure: Avoid rollover costs associated with future contracts, which can erode returns over time.
• Direct: A more straightforward structure for investors to understand and analyze.
• Contango Mitigation: One significant advantage of spot-based ETFs is the mitigation of contango, a situation in which futures prices are higher than the spot price.

Expense Ratio and Fees

Both BTCL and BTCZ carry an expense ratio of 0.95%. In practical terms:

• BTCL/BTCZ: $9.50 annual fee per $1,000 invested
• Some futures-based competitors: Up to $18.50 annual fee per $1,000 invested

This competitive pricing structure — nearly half that of some alternatives — can significantly impact returns, especially for frequent traders.

Daily Reset Mechanism

These ETFs rebalance their exposure at the end of each trading day — a feature that optimizes them for short-term strategies but requires an understanding of the effects of compounding.

Here’s how it works:

• Day 1: Bitcoin up 10% → BTCL up 20%, BTCZ down 20%
• Day 2: Bitcoin down 9% → BTCL down 18%, BTCZ up 18%

Over two days, Bitcoin is up 0.1%, but BTCL is down 1.6%, and BTCZ is down 5.6%. This compounding effect means these ETFs may not precisely track 200% or -200% of Bitcoin’s performance over periods longer than one day.

Applications and Trading Strategies

BTCL and BTCZ offer versatile applications for various trading scenarios:

• Momentum Trading: Amplify gains in trending markets — use BTCL for bullish trends, BTCZ for bearish.
• Hedging: Institutional investors can use BTCZ to hedge existing long Bitcoin positions — a useful tool for risk management.
• Volatility Strategies: Profit from Bitcoin’s significant price swings — in either direction — using both ETFs strategically.
• Pair Trading: Create market-neutral strategies by simultaneously using BTCL and BTCZ — an advanced technique for seasoned traders.
• Short-term Tactical Allocation: Make quick adjustments to crypto exposure without handling digital assets — useful for responsive portfolio management.
• Trading Options: BTCL and BTCZ are currently the only pure spot Bitcoin ETFs with options available. This provides traders with an additional tool for leveraged exposure to Bitcoin price movements and more complex trading strategies.

The ability to execute these strategies through standard brokerage accounts makes these ETFs particularly attractive to investors who prefer familiar trading platforms.

Important Considerations

• Daily Objective: These ETFs aim to achieve their stated goals on a daily basis — not over longer periods.
• Leverage Risk: The use of leverage amplifies both gains and losses — a 1% move in Bitcoin translates to a 2% move in the ETFs.
• Active Management: Due to the daily reset, these ETFs require regular monitoring.
• Volatility: Bitcoin’s inherent price volatility, combined with leverage, can lead to significant short-term fluctuations.

About REX Shares

REX Shares is an asset management firm specializing in alternative ETF products. It has a history of innovation in the ETF space. BTCL and BTCZ join their diverse lineup, further expanding their offerings in the cryptocurrency investment sphere.

Bottom Line

BTCL and BTCZ provide active traders and institutions with sophisticated tools for executing short-term Bitcoin strategies.

By offering leveraged exposure to spot Bitcoin prices in a regulated ETF format, these products mark a significant development in Bitcoin-related investment vehicles.

*As with any leveraged or cryptocurrency-related investment, potential investors should thoroughly understand the products’ mechanics and risks before incorporating them into their trading strategies.

Fund Objective:

The T-Rex 2X Long Bitcoin Daily Target ETF (the “Fund”) seeks daily investment results, before fees and expenses, of 200% of the daily performance of spot Bitcoin. The Fund does not seek to achieve its stated investment objective over a period of time other than a single/one trading day.

The T-Rex 2X Inverse Bitcoin Daily Target ETF (the “Fund”) seeks daily investment results, before fees and expenses, of 200% of the inverse (or opposite) of the daily performance of spot Bitcoin. The Fund does not seek to achieve its stated investment objective over a period of time other than a single/one trading day.

The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily inverse (-2.0X) investment results, understand the risks associated with the use of shorting and are willing to monitor their portfolios frequently. The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. For periods longer than a single day, the Fund will lose money if the Reference Assets’ performance is flat, and it is possible that the Fund will lose money even if the Reference Assets’ performance decreases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day if the price of the Reference Assets goes up by more than 50% in one trading day. The Fund only intends to use reference assets that are traded on a U.S. regulated exchange.

Investing in the Funds is not equivalent to investing directly in the ‘Reference Assets’. The Fund will not invest directly in Bitcoin or directly short Bitcoin.

Investment Risks

Investing in the Funds involves a high degree of risk. As with any investment, there is a risk that you could lose all or a portion of your investment in the Funds.

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about REX Shares. To obtain a Fund’s prospectus and summary prospectus call 844-802-4004. A Fund’s prospectus and summary prospectus should be read carefully before investing.

Investing in a REX Shares ETF may be more volatile than investing in broadly diversified funds. The use of leverage by a Fund increases the risk to the Fund. The REX Shares ETFs are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk, consequences of seeking daily leveraged, or daily inverse leveraged, investment results and intend to actively monitor and manage their investment. For the complete disclosure statement, click HERE.

The Fund has a daily investment objective and the Fund’s performance for periods greater than a trading day will be the result of each day’s returns compounded over the period, which is very likely to differ from -200% of the Reference Assets’ performance, before fees and expenses. Compounding affects all investments but has a more significant impact on funds that are inverse and that rebalance daily and becomes more pronounced as volatility and holding periods increase.

Distributor: Foreside Fund Services, LLC, member FINRA, not affiliated with REX Shares or the Funds’ investment advisor.

The post How to potentially maximize your bitcoin strategy with leveraged and inverse ETFs appeared first on REX Shares.

Our 2X Long Bitcoin Daily Target ETF (BTCL) is designed for traders who are bullish on Bitcoin, offering them the opportunity to amplify their daily returns. Conversely, our 2X Inverse Bitcoin ETF (BTCZ) caters to those who seek to profit from a decline in Bitcoin prices, enabling sophisticated strategies in both rising and falling markets.

For more information about BTCL or BTCZ, please go to https://www.rexshares.com/t-rex-leveraged-etfs/

A Note to Our Community

With the introduction of options trading exclusively for T-REX leveraged and inverse Bitcoin Daily target ETFs, we anticipate a surge in interest from our trading community, particularly among Bitcoin enthusiasts. We strongly encourage all traders to approach this exclusive offering with diligence, ensuring they are well-informed about the unique characteristics and risks associated with trading options for these specialized ETFs.

About REX Financial:

REX Financial is an innovative ETP provider specializing in alternative-strategy ETFs and ETNs, with over $6 billion in assets under management. The REX Financial brand encompasses REX Shares, T-REX, MicroSectorsTM, and REX Advisers. The firm is renowned for creating MicroSectorsTM and co-creating the T-REX product lines of leveraged and inverse tools for traders and recently launched a series of option-based income strategies.

About Tuttle Capital Management

Tuttle Capital Management is an industry leader in offering thematic and actively managed ETFs. TCM utilizes informed agility when managing portfolios, an approach that, from an informed standpoint, can assess and blend effective elements from multiple investment styles, and, from a position of agility, aims to stay in harmony with market trends without being too passive or too active. Please visit www.tuttlecap.com for more information.

For media inquiries, please contact:

Gregory FCA for REX Shares

rexshares@gregoryfca.com

Matthew Tuttle for Tuttle Capital

Mtuttle@TuttleCap.com

Important Information

Investors should consider the investment objectives, risk, charges, and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the T-REX ETFs please call 844-802-4004 or visit our website at rexshares.com. Read the prospectus and summary prospectus carefully before investing.

The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leveraged (2X) and inverse (- 2X) investment results, understand the risks associated with leverage and the use of shorting and are willing to monitor their portfolios frequently. The Fund does not seek to achieve its stated investment objective over a period of time other than a single/ one trading day. The Shares will change in value, and you could lose money by investing in the Fund. The Fund may not achieve its investment objective. The Fund only intends to use reference assets that are traded on a U.S. regulated exchange. Investing in the funds is not equivalent to investing directly in Spot Bitcoin as the fund will generally hold 0% of underlying shares.

The Funds’ investment adviser will not attempt to position each Fund’s portfolio to ensure that a Fund does not gain or lose more than a maximum percentage of its net asset value on a given trading day. As a consequence, if a Fund’s underlying security moves more than 50%, as applicable, on a given trading day in a direction adverse to the Fund, the Fund’s investors would lose all of their money.

There is no assurance that the T-Rex 2X Long Bitcoin Daily Target ETF will achieve its daily leveraged investment objective or that the T-Rex 2X Inverse Bitcoin Daily Target ETF will achieve its daily inverse leveraged investment objective. An investment in each Fund could lose money. The Funds are not complete investment programs.

Important Risks

Effects of Compounding and Market Volatility Risk. The Fund has a daily leveraged investment objective and the Fund’s performance for periods greater than a trading day will be the result of each day’s returns compounded over the period, which is very likely to differ from the Fund performance, before fees and expenses.

Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying instrument, including the anticipated volatility, which are affected by fiscal and monetary policies and by national and international political, changes in the actual or implied volatility of the underlying reference security, the time remaining until the expiration of the option contract and economic events. For the Fund in particular, the value of the options contracts in which it invests are substantially influenced by the value of the underlying securities.

Industry Concentration Risk. The Fund will be concentrated in the industry to which the Reference Assets are assigned (i.e., hold more than 25% of its total assets in investments that provide exposure to Bitcoin). A portfolio concentrated in a particular industry may present more risks than a portfolio broadly diversified over several industries.

Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. Investing in derivatives may be considered aggressive and may expose the Fund to greater risks, and may result in larger losses or small gains, than investing directly in the reference assets underlying those derivatives, which may prevent the Fund from achieving its investment objective.

Reference Asset Investing Risk. Issuer-specific attributes may cause an investment held by the Fund to be more volatile than the market generally. The value of an individual security or particular type of security may be more volatile than the market as a whole and may perform differently from the value of the market as a whole. The following is a summary of risk factors related to the Reference Assets as identified by the Reference ETPs in their registration statements – this is not purported to be a complete list of risks (references to “shares” in this section are to shares of the Reference ETPs).

Cryptocurrency Risk. The Fund has exposure to the crypto asset platforms as a result of the Reference Assets attempting to reflect generally the performance of the price of Bitcoin before payment of its expenses and liabilities. A crypto asset operates without central authority or banks and is not backed by any government. Crypto assets are often referred to as a “virtual asset” or “digital asset,” and operate as a decentralized, peer-to-peer financial trading platform and value storage that is used like money. A crypto asset is also not a legal tender. Federal, state or foreign governments may restrict the use and exchange of a crypto asset, and regulation in the U.S. is still developing. Further, the spot markets for crypto assets are fragmented and lack regulatory compliance and/or oversight. Crypto asset platforms may stop operating or permanently shut down due to fraud, technical glitches, hackers or malware. The Fund’s indirect exposure to crypto assets such as Bitcoin may be affected by the high volatility associated with such crypto asset exposure. Future regulatory actions or policies may limit the ability to sell, exchange or use crypto assets, thereby impairing their prices. Crypto asset trading platforms on which Bitcoin trades, and which may serve as a pricing source for valuation of spot Bitcoin held by the Reference ETPs may be subject to enforcement actions by regulatory authorities.

Liquidity Risk. Holdings of the Fund may be difficult to buy or sell or may be illiquid, particularly during times of market turmoil. Illiquid securities may be difficult to value, especially in changing or volatile markets. If the Fund is forced to buy or sell an illiquid security or derivative instrument at an unfavorable time or price, the Fund may be adversely impacted. Certain market conditions or restrictions may prevent the Fund from limiting losses, realizing gains or achieving a high correlation with the Reference Assets.

New Fund Risk. As of the date of this prospectus, the Fund has no operating history and currently has fewer assets than larger funds. Although the Fund is new, the structure of providing long leveraged exposure to the price of Bitcoin is not necessarily a new strategy as similar leveraged funds, such as those that primarily invest in cash settled futures contracts, currently trade on the Chicago Mercantile Exchange. Like other new funds, large inflows and outflows may impact the Fund’s market exposure for limited periods of time. This impact may be positive or negative, depending on the direction of market movement during the period affected.

Leverage Risk. The Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are averse to its investment objective than a fund that does not utilize leverage. An investment in the Fund is exposed to the risk that a decline in the daily performance of the Reference Assets will be magnified. This means that an investment in the Fund will be reduced by an amount equal to 2% for every 1% daily decline in the Reference Assets, not including the costs of financing leverage and other operating expenses, which would further reduce its value.

Non-Diversification Risk. The Fund is classified as “non-diversified” under the Investment Company Act of 1940, as amended. This means it has the ability to invest a relatively high percentage of its assets in the securities of a small number of issuers or in financial instruments with a single counterparty or a few counterparties.

The REX Shares ETFs are distributed by Foreside Fund Services, LLC

The post Options Market Now Open for Latest T-REX 2X/-2X Bitcoin Daily Target ETFs appeared first on REX Shares.

MIAMI – July 10, 2024 — REX Shares (“REX”) in collaboration with Tuttle Capital Management (“TCM”), today adds two new products to their T-REX ETF suite: the T-REX 2X Long Bitcoin Daily Target ETF (CBOE: BTCL) and the T-REX 2X Inverse Bitcoin Daily Target ETF (CBOE: BTCZ). Providing 200% and -200% exposure to Bitcoin’s daily performance using spot bitcoin ETPs (exchange-traded products) as the “Reference Assets”, these T-REX ETFs offer sophisticated investors 2X leveraged and inverse exposure to the spot price of Bitcoin.

“Bitcoin’s meteoric rise in 2024 has captured the attention of investors and traders worldwide,” said Scott Acheychek, COO of REX Financial, REX Shares parent company. “By launching 2X leveraged and inverse Bitcoin ETFs, we’re arming traders with powerful tools to capitalize on Bitcoin’s price swings like never before.”

The launch arrives amidst a rapidly-evolving crypto landscape, with the debut of spot Bitcoin ETPs in January catalyzing a surge in trading volumes and creating newfound optimism for digital assets. Within the past 6 months, spot Bitcoin ETPs have amassed nearly $50 billion in assets under management. Bitcoin jumped to a new record in March, breaking through $70,000 for the first time.

“Expanding into digital assets represents a major milestone as we strive to deliver cutting-edge ETFs tailored to modern investor needs,” added Matt Tuttle, CEO of Tuttle Capital Management. “With their amplified upside and downside exposure, these Bitcoin funds epitomize our commitment to innovation and pushing boundaries in the ETF landscape.”

With nine innovative products now in its arsenal since launching in October 2023, the T-REX suite continues enhancing its lineup of trading tools for investors.

For more information on T-REX ETFs, please visit rexsharestg.wpengine.com.

About REX Financial:

REX Financial is an innovative ETP provider specializing in alternative-strategy ETFs and ETNs, with over $6 billion in assets under management. The REX Financial brand encompasses REX Shares, T-REX, MicroSectorsTM, and REX Advisers. The firm is renowned for creating MicroSectorsTM and co-creating the T-REX product lines of leveraged and inverse tools for traders and recently launched a series of option-based income strategies.

About Tuttle Capital Management

TCM is an industry leader in offering thematic ETFs that offer first of their kind exposures. Please visit www.tuttlecap.com for more information.

For media inquiries, please contact:

Gregory FCA for REX Shares

rexshares@gregoryfca.com

Matthew Tuttle for Tuttle Capital

Mtuttle@TuttleCap.com

Investors should consider the investment objectives, risk, charges, and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the T-REX ETFs please call 844-802-4004 or visit our website at rexshares.com. Read the prospectus and summary prospectus carefully before investing.

The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leveraged (2X) and inverse (- 2X) investment results, understand the risks associated with leverage and the use of shorting and are willing to monitor their portfolios frequently. The Fund does not seek to achieve its stated investment objective over a period of time other than a single/ one trading day. The Shares will change in value, and you could lose money by investing in the Fund. The Fund may not achieve its investment objective. The Fund only intends to use reference assets that are traded on a U.S. regulated exchange. Investing in the funds is not equivalent to investing directly in Spot Bitcoin as the fund will generally hold 0% of underlying shares.

The Funds’ investment adviser will not attempt to position each Fund’s portfolio to ensure that a Fund does not gain or lose more than a maximum percentage of its net asset value on a given trading day. As a consequence, if a Fund’s underlying security moves more than 50%, as applicable, on a given trading day in a direction adverse to the Fund, the Fund’s investors would lose all of their money.

There is no assurance that the T-Rex 2X Long Bitcoin Daily Target ETF will achieve its daily leveraged investment objective or that the T-Rex 2X Inverse Bitcoin Daily Target ETF will achieve its daily inverse leveraged investment objective. An investment in each Fund could lose money. The Funds are not complete investment programs.

Important Risks

Industry Concentration Risk. The Fund will be concentrated in the industry to which the Reference Assets are assigned (i.e., hold more than 25% of its total assets in investments that provide exposure to Bitcoin). A portfolio concentrated in a particular industry may present more risks than a portfolio broadly diversified over several industries.

Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. Investing in derivatives may be considered aggressive and may expose the Fund to greater risks, and may result in larger losses or small gains, than investing directly in the reference assets underlying those derivatives, which may prevent the Fund from achieving its investment objective.

Reference Asset Investing Risk. Issuer-specific attributes may cause an investment held by the Fund to be more volatile than the market generally. The value of an individual security or particular type of security may be more volatile than the market as a whole and may perform differently from the value of the market as a whole. The following is a summary of risk factors related to the Reference Assets as identified by the Reference ETPs in their registration statements – this is not purported to be a complete list of risks (references to “shares” in this section are to shares of the Reference ETPs).

Cryptocurrency Risk. The Fund has exposure to the crypto asset platforms as a result of the Reference Assets attempting to reflect generally the performance of the price of Bitcoin before payment of its expenses and liabilities. A crypto asset operates without central authority or banks and is not backed by any government. Crypto assets are often referred to as a “virtual asset” or “digital asset,” and operate as a decentralized, peer-to-peer financial trading platform and value storage that is used like money. A crypto asset is also not a legal tender. Federal, state or foreign governments may restrict the use and exchange of a crypto asset, and regulation in the U.S. is still developing. Further, the spot markets for crypto assets are fragmented and lack regulatory compliance and/or oversight. Crypto asset platforms may stop operating or permanently shut down due to fraud, technical glitches, hackers or malware. The Fund’s indirect exposure to crypto assets such as Bitcoin may be affected by the high volatility associated with such crypto asset exposure. Future regulatory actions or policies may limit the ability to sell, exchange or use crypto assets, thereby impairing their prices. Crypto asset trading platforms on which Bitcoin trades, and which may serve as a pricing source for valuation of spot Bitcoin held by the Reference ETPs may be subject to enforcement actions by regulatory authorities.

Liquidity Risk. Holdings of the Fund may be difficult to buy or sell or may be illiquid, particularly during times of market turmoil. Illiquid securities may be difficult to value, especially in changing or volatile markets. If the Fund is forced to buy or sell an illiquid security or derivative instrument at an unfavorable time or price, the Fund may be adversely impacted. Certain market conditions or restrictions may prevent the Fund from limiting losses, realizing gains or achieving a high correlation with the Reference Assets.

New Fund Risk. As of the date of this prospectus, the Fund has no operating history and currently has fewer assets than larger funds. Although the Fund is new, the structure of providing long leveraged exposure to the price of Bitcoin is not necessarily a new strategy as similar leveraged funds, such as those that primarily invest in cash settled futures contracts, currently trade on the Chicago Mercantile Exchange. Like other new funds, large inflows and outflows may impact the Fund’s market exposure for limited periods of time. This impact may be positive or negative, depending on the direction of market movement during the period affected.

Leverage Risk. The Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are averse to its investment objective than a fund that does not utilize leverage. An investment in the Fund is exposed to the risk that a decline in the daily performance of the Reference Assets will be magnified. This means that an investment in the Fund will be reduced by an amount equal to 2% for every 1% daily decline in the Reference Assets, not including the costs of financing leverage and other operating expenses, which would further reduce its value.

Non-Diversification Risk. The Fund is classified as “non-diversified” under the Investment Company Act of 1940, as amended. This means it has the ability to invest a relatively high percentage of its assets in the securities of a small number of issuers or in financial instruments with a single counterparty or a few counterparties.

The REX Shares ETFs are distributed by Foreside Fund Services, LLC

The post REX Shares and Tuttle Capital Management Launch 2X Leveraged and Inverse Bitcoin ETFs appeared first on REX Shares.