Leveraged ETFs on NVIDIA stock have record inflows of funds before stock prices plummeted

June 25, 2024 7:48 JST

Last week, 743 million dollars flowed into NVDL, which provides double daily returns.
The NVDL fell about 25% from the closing price on the 18th - it is still up about 329% since the beginning of the year.
For day traders riding the artificial intelligence (AI) related stock boom, there was no other bet where they could get double digit returns every week.
　　This indicates an exchange-traded fund (ETF) “GranitShares 2x Long NVDA Daily ETF” (ticker: NVDL) with leverage applied to the stock price of the US semiconductor manufacturer NVIDIA. Individual investors who have poured in record money are now facing huge losses due to the loss of the company's total market value, which has risen to about 430 billion dollars (about 68.63 trillion yen).