I personally am trading bitcoin to accumulate more bitcoin as the FOMO is not over yet - but in the immediate term my read of the chart is a downtrend.
I would absolutely love the ability to have a leveraged ETP on btc -- especially if options become available for it. That would be absolutely insane!
I tend to short volatility etf VXX, or take a long in XIV every pop, nothing decays worse than volatility futures in capital markets!
But absolutely you could, provided you have the capital to never get a margin call perpetually hold leveraged ETPs short to capitalize on price decay. Energy is best for this. Gold is another option but with the fed cycle the trade is more complex. SPXS is another good one to short.
I got into XIV when it was $16 a couple of winters ago and sold at $22. I think it’s trading around $80 right now? Makes me want to kick myself. It’s a good one. It benefits from contract rollover decay of its inverse like 90% of the time. When VIX is in Contango XIV is a winner.
the XIV parabolic move is an anomaly - this is the lowest historical volatility in the stock market since 07 - difference now is that in 2014 the index became completely derived from options bets on the S&P mini futures - so its hard to say if thats part of why this run is occurring ... but as you know 1 decent spike in volatility can wreck XIV.
Yes it is a bit of an anomaly and I think the markets are somewhat rigged and have been for the past several years at least...rigged in favor of the bull. My trading experience is less than a decade old so the current environment is the only one I've ever really known. I've met a lot of people on ihub (used to hang out there a lot, not so much anymore) who have been around a long time saying that it didn't used to be like this--things used to be easier to predict and market moves made a bit more sense than they do now. I think some of it has to do with algos but I also think the govt has had a hand in it as well.
Lately it seems like the market just has to close to the upside no matter what, meanwhile we have things like netflix with a PE of 300 -- 300 years to double your money. Something has to give.
further, on the flipside, when nixon was president as soon as any inkling of an impeachment motion hit, stocks entered a 1 year bear market -- perhaps we may observe something similar, all things considered.