Leverage Shares by Themes plans Anthropic ETFs before IPO

Leverage Shares by Themes plans to introduce three leveraged and inverse exchange-traded funds linked to the stock of Anthropic, a developer of generative AI models, as investors weigh the company's case ahead of its anticipated public listing.

Anthropic's anticipated listing would bring a major developer of generative AI models into public markets. Investors evaluating the company may reach different conclusions about growth, valuation, competition, capital requirements, and the development of the broader generative AI market. The release characterizes leveraged and inverse funds as an additional element of that discussion.

Leveraged and inverse single-stock ETFs aim for defined multiples, or inverse multiples, of an individual stock's daily performance. The 2x long fund targets 200% of the reference stock's daily performance before fees and expenses, the 2x short fund targets -200%, and the 1x short fund targets -100%. These products offer daily bullish or inverse exposure within an exchange-traded structure, without requiring an investor to take a leveraged or short position in the underlying stock.

Because these funds rebalance each trading day, returns over periods longer than one day can differ significantly from the stated multiple of the underlying stock's cumulative return. The release states that an investor could lose the full principal value of the 2x long fund if Anthropic's stock falls more than 50% in a single trading day, and of the 2x short fund if the stock rises more than 50% in a single trading day.

The planned products carry the names Leverage Shares 2x Long Anthropic Daily ETF, Leverage Shares 2x Short Anthropic Daily ETF, and Leverage Shares 1x Short Anthropic Daily ETF. Themes Management Company LLC serves as adviser to the Themes ETFs Trust, and ALPS Distributors, Inc. distributes the funds. The release states that Anthropic does not sponsor, endorse, or promote the funds.

The funds are described as not yet launched, and newly launched funds carry risks associated with a limited operating history.