Volatility Shares, a financial firm known for its novel exchange-traded funds, is launching a new line of ETFs. The financial instrument, using a one-plus-one model, will give investors 100% leveraged exposure to two distinct assets simultaneously.

This novel product structure combines major asset classes like cryptocurrencies, equity indices, and volatility measures. It offers portfolios such as BTC+ETH, Nasdaq+ETH, S&P+BTC, S&P+ETH, S&P+Nasdaq, and S&P+VIX.

Volatility Shares Introduces Diversified Exposure to ETFs

According to Eric Balchunas, an ETF specialist at Bloomberg Intelligence, the one-plus-one ETFs are reminiscent of “Return-Stacked ETFs.” They use leverage to maximize exposure without requiring additional capital from investors. Balchunas highlighted the appeal of these products for investors seeking to optimize their portfolio allocation without sacrificing exposure to one asset for another.

“VolatilityShares launching a new line of One+One ETFs which use leverage to give you 100% exposure to two assets at once e.g. 100% QQQ + 100% Ether. Seems similar to the Return Stacked ETFs,” Balchunas remarked.

Jeffrey Ptak, CFA and Chief Ratings Officer at Morningstar, provided additional insight. He explained that the ETFs aim to deliver 100% notional exposure to each of the two underlying assets by utilizing futures contracts.

For instance, the Nasdaq+BTC ETF would simultaneously provide full exposure to the tech-heavy Nasdaq index and Bitcoin’s volatile crypto market. Ptak also confirmed that filings for this line of ETFs have been submitted to regulatory bodies.

Implications for Investors as Crypto-ETF Competition Heats Up

For investors, one-plus-one ETFs represent significant growth in the exchange-traded fund space. Combining traditional financial instruments like the S&P 500 or Nasdaq with high-growth assets such as Bitcoin and Ethereum can allow for unique diversification strategies.

However, the leverage inherent in these products introduces additional risks, particularly for volatile assets like cryptocurrencies. This could amplify both gains and losses.

“Products like these can be game changers for portfolio diversification, but their complexity and leverage make them suitable for informed investors who understand the risks,” said an industry expert following the announcement.

Nevertheless, Volatility Shares’ novel approach arrives amidst increased activity in the crypto ETF space. Bitwise recently filed with the US Securities and Exchange Commission (SEC) for a “Bitwise 10 Crypto Index ETF.”

The index seeks to track the performance of a diversified basket of top cryptocurrencies. The move reflects the growing demand for accessible crypto investments that go beyond single-asset offerings like Bitcoin or Ethereum.

Franklin Templeton also submitted a proposal to the SEC for a Bitcoin and Ethereum Index ETF. This fund would directly compete with Volatility Shares’ dual-asset products by targeting the same market of investors seeking to combine traditional equity exposure with cryptocurrencies.

Despite the surge in crypto-ETF filings, regulatory challenges remain a key hurdle. The SEC has been historically cautious in approving crypto-related ETFs due to concerns over market manipulation and volatility. However, with growing interest from institutional players like BlackRock, Franklin Templeton, and now Volatility Shares, the momentum toward approval may be shifting.

Chinese data mining firm SOS Limited’s board of directors has approved a $50 million investment in Bitcoin. The decision was shared on November 27 through the company’s official press release.

SOS is planning to use several trading strategies for this investment. This will include quantitative trading, direct investment, and arbitrage strategies.

SOS Stock Surges 100% Following its Bitcoin Purchase

This announcement comes as Bitcoin has started to recover largely from its earlier liquidation. BTC fell below $91,000 yesterday, its lowest in a week. However, the bullish cycle regained momentum as the largest cryptocurrency surged back to $96,000 today. 

Following this news, SOS Limited’s share prices jumped nearly 100% on Wednesday, November 27. The cryptocurrency’s recent surge is driving increased participation from investors globally. SOS Limited’s Bitcoin purchase aligns with the growing enthusiasm around digital assets.

The company views Bitcoin as a key digital asset with strategic importance on a global scale. SOS Limited supports the notion that Bitcoin could play a pivotal role in global reserve strategies.

“We believe this investment plan will further enhance the Company’s overall competitiveness and profitability in the digital asset investment sector,” said Yandai Wang, Chairman and CEO of SOS. 

Public Companies Are Extremely Bullish on BTC

Meanwhile, Bitcoin acquisitions have been surging across publicly traded companies in recent months. Earlier this week, MicroStrategy completed another round of Bitcoin purchases worth $5.4 billion.  This was the third consecutive BTC purchase from Michael Saylor’s firm in November alone. 

So far, the firm has acquired over $16 billion worth of BTC this year, extending its lead as the largest Bitcoin holder across the industry. 

Bitcoin’s recent highs have also impacted Microstrategy’s stock performance. MSTR surged by nearly 450% YTD, becoming one of the top 100 public companies in the US. 

Also, crypto miner Marathon Digital recently raised $1 billion through a convertible senior notes offering. As BeInCrypto reported earlier, the lion’s share of this fund will be used to buy more Bitcoin. 

Despite Bitcoin reaching $99,000 in the current cycle, these major firms seem extremely bullish on BTC’s long-term price. Earlier this week, Pantera Capital projected that the cryptocurrency will reach $740,000 by 2028. 

The firm previously projected Bitcoin to be around $117,000 by August 2025, and we’re not far from this mark. 

From its peak of $99,531 on November 23rd, Bitcoin, the world’s leading digital asset, is now trading at the $92k to $93k level, prompting many to speculate that its historic price run has ended. However, for CryptoQuant CEO Ki Young Ju, the alpha coin’s current price action isn’t a cause for concern.

In a Twitter/X post, Ki Young shared that Bitcoin’s retail investors are not yet in “FOMO” (fear of missing out) mode. The current retail action, he says, doesn’t indicate signs of excessive excitement or panic.

Ki Young explained that there’s still a surge of trading activities across markets for spots, futures, and exchanges.

Retail Investors Feeling The ‘FOMO’ In Meme Coins?

In a Twitter/X post last November 26th, Ki Young argued BTC retail investors are not yet feeling the excitement of missing out. Market indicators, he says, point to neutral market sentiment, the same position it has held since April when the top digital asset traded at $64,000.

#Bitcoin retail investors aren’t in FOMO yet. pic.twitter.com/DiGcChyNWt

— Ki Young Ju (@ki_young_ju) November 26, 2024

During the last Bitcoin bill run, the retail market’s FOMO reached its high in January 2021 when the asset was trading over $30,0000, pushing the price to an all-time high of $69,000.

Although Bitcoin retested the $100k mark many times last week, market observers say that retail investors still need to invest heavily.

Recent Price Dips Due To Macro Environment

According to observations from QCP Capital, Bitcoin’s successive price dips can be attributed to the existing macro environment. Plenty of factors now prevent Bitcoin from continuing its push towards $100k.

According to the QCP Capital, Bitcoin is facing pressure from the possible release of economic data like FOMC minutes and the PCE report. Also, Bitcoin was overbought following a whirlwind price action after the US elections.

No Need To Worry?

However, QCP Capital pointed out that it is not a cause for concern and that sentiment for digital assets remains bullish.

Based on on-chain data, millions of USD were liquidated in the last 24 hours, and about $438 million in ETF outflows were recorded last November 25th.

2/ No immediate catalysts: With U.S. holidays approaching and major economic data like tonight’s FOMC minutes and tomorrow’s PCE report, the market lacks momentum to push #BTC toward $100K. #BTC was extremely overbought post-election, making a cooldown inevitable.

— QCP (@QCPgroup) November 26, 2024

For the CryptoQuant CEO, market participation isn’t slowing down. According to market indicators, trading is booming in all exchanges, markets, and tickets. Based on CryptoQuant’s analysis, retail investors feel the “FOMO” on meme coins, particularly Dogecoin.

Featured image from CNBC, chart from TradingView