ETHU Options Available

The 2x Ether ETF (Ticker: ETHU) now has options available for trading!

2x Ether ETF (BATS:ETHU)

PALM BEACH GARDENS, FL, UNITED STATES, June 7, 2024 /EINPresswire.com/ — ETHU is the first leveraged Ethereum-linked ETF available in the United States. Traders now have convenient and liquid access to leveraged Ethereum exposure through a traditional brokerage account, eliminating the need for a crypto exchange account or wallet.

Disclosure

An investor should consider the investment objectives, risks, and charges and expenses of the Fund carefully before investing. A preliminary prospectus which contains this and other information about the Fund may be obtained by calling 866-261-0273. Read it carefully before investing.

Investing involves risk; principal loss is possible. The Fund invests in Ether Futures Contracts and not in Ether directly. Ether Futures Contracts are relatively new investments.

They are subject to unique and substantial risks, and historically, have been subject to significant price volatility. The value of an investment in the Fund could decline significantly and without warning, including to zero. You may lose the full value of your investment within a single day. If you are not prepared to accept significant and unexpected changes in the value of the Fund and the possibility that you could lose your entire investment in the Fund you should not invest in the Fund.

Daily rebalancing and the compounding of returns over time means that the returns of the Fund for a period longer than a single day will be the result of each day’s returns compounded over the period. This will very likely differ in amount, and possibly even direction, from twice the return of Ether for the same period. The Fund will lose money if Ether’s performance is flat over time. The Fund can lose money regardless of the performance of Ether, because of rebalancing of the Ether Futures Contract, Ether’s volatility, compounding of returns and other factors.

Derivatives Risk. In addition to Ether Futures Contracts, the Fund may obtain exposure through the following other derivatives: options on Other Investment Companies and swap agreement transactions that reference Other Investment Companies, Ether, Ether Futures Contracts, or Ether-related indexes.

Liquidity Risk. The market for the Ether Futures Contracts is still developing and may be subject to periods of illiquidity. During such times it may be difficult or impossible to buy or sell a position at the desired price.

Leverage Risk. The Fund seeks to achieve and maintain the exposure to the price of Ether by using leverage inherent in futures contracts. Therefore, the Fund is subject to leverage risk.

Non-Diversification Risk. The Fund is classified as “non-diversified” under the 1940 Act. As a result, the Fund is only limited as to the percentage of its assets which may be invested in the securities of any one issuer by the diversification requirements imposed by the Internal Revenue Code of 1986, as amended.

New Fund Risk. As of the date of this prospectus, the Fund has no operating history and currently has fewer assets than larger funds. 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.

Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs.

The purchaser of options may offset or exercise the options or allow the options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the purchased options expire worthless, you will suffer a total loss of your investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing a deep-out-of-the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote.

Selling (“writing” or “granting”) an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin to maintain the position if the market moves unfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is “covered” by the seller holding a corresponding position in the underlying interest or a future or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited.

Foreside Fund Services, LLC is the distributor of ETHU.

Justin Young
Volatility Shares
[email protected]