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What’s Next in Bitcoin ETFs? Volatility Funds
Want to ride bitcoin’s wild price swings? Forward, backward or twice as high? Two firms filed last week for lines of bitcoin volatility ETFs. CoinShares and Volatility Shares are prepping funds with 1x, 2x and 1x-inverse exposure to the CME CF Bitcoin Volatility Index via futures contracts. They could serve as portfolio hedges, though volatility funds don’t necessarily work best as long-term holdings, said Eric Balchunas, senior ETF analyst at Bloomberg. “In the stock market, nothing is a better hedge than VIX,” he said. “When it comes to volatility ETFs, it’s probably wise to use them in the short term, ... (full story)