Leverage Shares had quite the end of the year in 2021, breaking the record for the greatest number of listings in one day on the London Stock Exchange, with 42 new products offering a new range of ETPs, including ETPs on ARK Invest’s renowned range of thematic ETFs, with inverse and leverage options, plus access to Berkshire Hathaway.
Oktay Kavrak, Product Strategist at Leverage Shares, explains that their 145 products, with assets of USD250 million, are largely single stock short and leveraged, although the firm does offer non-leveraged trackers on single stocks and even popular ETFs, like ARKK, ARKW and ARKG.
“The end goal is for us to have a marketplace where people can buy what they want,” Kavrak says. The firm has a global audience which is largely retail individual investors and day traders. The 3x Tesla ETP was the number one traded ETF for all ETPs in December.
“Investors using the leveraged products are getting in and out of positions more frequently, meaning they are using the products as intended. The added interest is also evident in the AUM, which has increased over 7x in 2021.”
The most volatile products have been electric car manufacturers from the West and the East – Tesla and NIO – and popular Chinese names like Alibaba and Baidu.
The demand for an ex-US version of the ARK products has been there for over a year. “The end goal is to have a marketplace with varying underlying assets and leverage factors,” Kavrak says. “If you are a trader you can go to the long/short products while an investor looking for affordable 1x exposure to Berkshire stock may be interested in our trackers.”
Traders with strong stomachs and strong convictions can go 3x long or short, or even up to 5x on certain products, or the gentler approach can be taken by following an ARK tracker which tracks on a one-to-one basis.
“Going short is pretty complicated and lots of people don’t want to deal with margin accounts – these products make it very convenient,” Kavrak says.
The products are also offered in three currencies, pound Sterling, Euros and US dollars so there is no extra fee to convert to the currency in which the investor is buying.