How Does BITX, Volatility Shares’ 2X Leveraged Bitcoin Strategy Fund Work?

On June 27th, Volatility Shares introduced BITX, the first 2X leveraged Bitcoin Exchange Traded Fund.  This post will review BITX’s architecture, operational characteristics, likely risks, possible rewards, and potential trading strategies.  A simulation of BITX back to 2014 provides some data on how this Exchange Traded Fund (ETF) might perform in the future. Before we get into the specifics of how BITX works, I’m disclosing …

Read more

UVIX Reverse Split History & Forecast (13-Aug-2024)

I’m predicting, based on decay rates and previous reverse splits, that Volatility Shares’ next UVIX reverse split, will be 1:10 reverse split, and will occur around 13-Aug-2024 Since its inception in March 2022, UVIX’s decay rate has averaged around 20% per month.  Some investors anticipate significant price moves in UVIX motivated by a reverse split.  I’m not in that camp.  UVIX’s price is tied to VIX …

Read more

Why Arbitrage is Essential For Exchange Traded Products

Arbitrage processes associated with Exchange Traded Products are normally invisible to investors but are essential for ETPs to trade as they are intended.  This post describes these arbitrage processes in detail and explains how they can (and have) gone wrong.  Exchange Traded Products (ETPs) enable stock-like trading of collections of securities that would be more difficult, or impossible to trade directly.  For example, it’s not …

Read more

How Does Volatility Shares’ 2X UVIX Work?

This post will discuss how UVIX works, including how it trades, how its value is established, what it tracks, backtest simulations, tax treatment, termination risk, and how it is likely to perform. VolatiltyShares’ new 2X Long VIX Futures ETF (ticker: UVIX) started trading on March 30th, 2022.  After a gap of one and half years, volatility traders have access to a nationally traded, 2X leveraged …

Read more

How Does Volatility Shares -1X SVIX Work

This post will discuss how SVIX works, including how it trades, how its value is established, what it tracks, tax treatment, termination risk, likely liquidity, and performance simulations.  Volatility Shares’ new -1x Short VIX Futures ETF (ticker: SVIX) started trading Wednesday, March 30th. After a gap of four years, volatility traders have access to a -1X leveraged short-term volatility Exchange Traded Fund (ETF).  SVIX’s Prospectus …

Read more