Crypto Comedy: Why Your Parents Want to Invest in Bitcoin Now! 😂

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Once upon a time, in a world where my parents scoffed at Bitcoin, calling it mere “made-up internet money,” the tides have turned. Now, they’re asking me how to dip their toes into this digital sea of currency. The recent launch of a 2x long Coinbase ETF is just the latest sign that Wall Street has finally caught on to the fact that traditional investors are hungry for a taste of the crypto pie. 🍰

For my parents, owning crypto outright is as likely as them understanding TikTok. But fear not! Investors are clamoring for a way to get their feet wet without diving headfirst into the deep end. Back in 2022, I suggested they buy the first Bitcoin ETF (Purpose Bitcoin ETF), and in mid-2024, I nudged them towards Robinhood shares. Both turned out to be profitable, though the Bitcoin ETF had more ups and downs than a rollercoaster at an amusement park. 🎢

With the rise of spot Bitcoin and other altcoin ETFs, digital assets are making a grand entrance into the financial mainstream. Even my cautious parents, who are as risk-averse as a cat on a hot tin roof, are starting to warm up to the idea of owning a slice of the crypto pie. 🥧

Coinbase thrives when more people are trading cryptos. ☀️

But let’s be real—leveraged ETFs like COIG aren’t your grandma’s long-term investments. They’re designed for traders who want to amplify short-term market moves, whether to ride a rally, hedge an existing position, or simply bet on momentum. And just like a cat with a laser pointer, they require a bit of finesse. 🐱

Investors who don’t grasp the daily resets and compounding effects might find themselves scratching their heads in confusion, losing money even as the underlying asset inches higher. It’s a wild ride, folks! 🎢

To delve deeper into the workings of COIG, the rationale behind its launch, and what’s next on the horizon, I had a chat with Paul Marino, Chief Revenue Officer at Themes ETFs.

The COIG ETF launch coincides with the recent downturn in both crypto and equity markets. What makes you confident that now is the right time to launch a 2X long Coinbase ETF (stock is down 25% ytd)? Are you seeing any specific market trends or shifts in investor demand that reinforce now is the right time to launch?

Our long-term view on Bitcoin and cryptocurrency is as bullish as a bull in a china shop. We believe Coinbase will benefit as one of the world’s largest and most secure crypto platforms. COIN trades with significant interest and volume, and launching COIG wasn’t about timing the market; it was about giving retail and professional traders a way to gain leverage in a daily liquid ETF wrapper. 🐂

How should a leveraged product like COIG fit into an investor’s broader portfolio? What should traders expect during periods of rapid price movements (either up or down) in Coinbase stock, and how should it be balanced with core long-term holdings?

If an investor is active and looking to add leverage to Coinbase exposure, COIG is an easy way to do that without margin requirements or using options. The goal is to provide 200% of the daily performance of COIN. But remember, because of the daily reset, we don’t recommend holding them for long periods. Use it tactically, like a sniper waiting for the perfect shot! 🎯

While Coinbase stock would benefit from increased crypto adoption, the movement doesn’t always correlate with Bitcoin price. How should investors think about the correlation between COIG and broader crypto market trends?

As crypto adoption increases in the U.S. and around the globe, COIN should benefit as one of the premier platforms. We don’t see it as a 1-to-1 correlation with Bitcoin, but we do believe that as the Bitcoin tide rises, it will lift all crypto boats. And yes, we’re optimistic about the long-term trend for crypto and Coinbase. 🚢

Leveraged ETFs sound all fun and games, but many investors don’t understand the math behind it. Due to daily compounding, a 2X fund would lose value if the underlying stock stays roughly flat. What key risks should investors understand before trading COIG (or any 2X fund)?

There’s risk in every investment, and we recommend all investors understand the instruments and underlying securities they invest in before they begin trading. You’re getting more upside opportunity based on the leverage factor, but you’re also risking more to the downside if the underlying stock goes down. We don’t recommend a “set it and forget” approach with these instruments. In a choppy or flat market, a trader could potentially lose capital. 📉

The prospectus notes that these funds are intended for “knowledgeable investors.” Can you explain what qualifies someone as being “knowledgeable”?

We believe it’s crucial for all investors and traders to understand what they invest in and what the risks are. Knowledge is power, folks! 💪

We are seeing increasing institutional adoption of crypto, with many investors (even my parents) planning or having already boosted their crypto allocations. Many prefer using more familiar vehicles like equities and ETFs over holding crypto directly. How is this trend influencing the crypto ETF landscape, and do you consider your COIG product to be a ‘competitor’ to crypto investments?

COIG is a levered ETF, and the underlying security happens to be tied to crypto. It’s not a “crypto” investment in the same way that a spot Bitcoin ETF is, nor does it hold the actual coins. It’s simply a way to gain 2x exposure to Coinbase, up or down, in a daily liquid ETF wrapper. And COIN is a proxy for crypto and BTC. 🪙

How is Themes ETFs positioning itself and differentiating its products in the leveraged ETF space? I see the expense ratio stands at 0.75%, which is one of the lowest-cost ETFs of its kind. What other advantages does Themes offer, be it structure or strategy that would convince investors to choose COIG over other alternatives?

The experience of the management team and the low fee is a major differentiator. We’re starting to see daily volumes and flows increase as more traders realize there’s a reliable alternative at a better cost. 💰

What can you tell us about Themes ETFs future crypto roadmap and product pipeline? Are there other themes/sectors within the crypto universe you are looking to introduce?

The ETF market is very fluid, and we’re always looking to provide innovative and first-to-market products that traders and investors want. We do have plans for more crypto-related products that we’ll be announcing in the near future. Stay tuned! 📅

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2025-03-22 00:50