Place/Date: - October 3rd, 2022 at 10:12 am UTC · 4 min read
Contact: Jenny Sun, Source: MEXC
Crypto asset trades emerge one after another, and leveraged ETFs are becoming the next star product after futures. MEXC, the cryptocurrency exchange with the highest futures trading liquidity on the Internet, takes the lead again in the cryptocurrency market with leveraged ETFs.
Comparing the leveraged ETF depth indicators of trading platforms such as Binance, MEXC, Kucoin, Gate, and Huobi, and analyzing their leveraged ETF transactions of mainstream cryptocurrencies with the highest market cap, it is found that the top three platforms in depth performance are MEXC, Binance, and Kucoin. The data shows that in terms of the trading depth of BTC 3L, ETH 3L, LTC 3L, and EOS 3L, MEXC ranks first in the aspect of liquidity.
Taking BTC 3L as an example, the depth of 1% on MEXC is 14,403,439USDT; The depth of 1% on Binance, which ranks second, is 87,359.56USDT; And the depth of 1% on Kucoin, which ranks third, is only 48,479.6USDT. At this depth, MEXC has surpassed the sum of Binance and Kucoin, and the gap tends to widen.
Comparing ETH, LTC, EOS and other mainstream cryptocurrencies, it can also be seen that MEXC’s leveraged ETF trading has the best liquidity, and the depth of other trading platforms is much lower than MEXC. Meanwhile, according to cryptorank data, Binance’s 24-hour leveraged ETF trading volume was $23.67 million USD, accounting for 63.5% of the market; MEXC’s 24-hour leveraged ETF trading volume was $9.25 million USD, with a market share of 24.8%, ranking second.
The leveraged ETF was first launched by MEXC in November 2019. It is a perpetual leveraged product that magnifies the price change of the benchmarked asset, aiming to provide leveraged returns on the benchmarked perpetual futures. It can be understood as an exchange-traded fund with leverage multiples.
The trading rules of leveraged ETF products are as simple as those of spot products. It is not necessary to use part of the margin to occupy positions like futures. At the same time, it can achieve multiple gains and returns like futures, so it is favored by some investors with low risk appetite.
At present, each token on MEXC supports leveraged ETF trading of 3x long (3L) and 3x short (3S), and some mainstream cryptocurrencies also support 2x, 4x, or 5x leverage and the risk is controllable. For example, when you want to go 3x long for BTC, you only need to buy BTC3L/USDT; When you want to go 3x short for BTC, you only need to buy BTC3S/USDT; And when you want to clear the position, you only need to sell the corresponding position. Leveraged ETFs do not use margins to occupy positions and do not have liquidation rules, so there is no need to worry about the risk of liquidation.
Leveraged ETFs have a rebalance mechanism, and the compound interest effect is obvious. In the continuous rising/falling market, the daily profit will be automatically transferred to the position and reinvested to realize compound interest, and the profit will be higher than that of margin or futures products of the same multiple. At present, MEXC supports leveraged ETF trading of more than 300 cryptocurrencies such as BTC, ETH, DOT, ATOM, SHIB, DOGE, AAVE, CRV, etc. It provides the most cryptocurrencies on the Internet, allowing traders to have different choices in different trends or unilateral market conditions.
MEXC is the world’s leading cryptocurrency trading platform, providing one-stop cryptocurrency trading services for spot, ETF, futures, Staking, NFT Index, etc.,and serving more than 10 million users worldwide. The core team has a solid background in traditional finance, and has professional financial product logic and technical security guarantees in terms of cryptocurrency products and services. In October 2021, MEXC Global won the title of “Best Cryptocurrency Exchange in Asia”. Currently, it supports the trading of more than 1,500 cryptocurrency, and is the trading platform with the fastest launch speed for new projects and the most tradable categories. Visit the website and blog for more information, and follow MEXC Global and M-Ventures & Labs.
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