Short-term traders are eagerly betting on Nvidia’s quick comeback, investing heavily in the three biggest funds designed to double daily profits from Nvidia’s stock. These traders rushed to purchase leveraged funds as soon as Nvidia’s stock took a huge hit on Monday, dropping more than it ever has in a single day. This drop happened after China’s DeepSeek introduced a new AI model, causing a panic.
Will Rhind, CEO of GraniteShares, shared that they saw about $1 billion flowing into their top fund, the GraniteShares 2x Long NVDA Daily ETF. But even this large amount wasn’t enough to balance out the losses, as Nvidia’s assets fell from over $6 billion last year to around $4.3 billion now. The four major leveraged Nvidia funds all lost between 33% and 34% in value on Monday.
The T-Rex 2x Long Nvidia Daily Target ETF attracted $7.6 million in new investments on the same day. Scott Acheychek from REX Financial said this fund now has about $488.4 million in total assets. Interestingly, the smaller fund, which profits when Nvidia’s stock falls, experienced $3.1 million in outflows.
Direxion’s Daily NVDA Bull 2x Shares ETF, with $435 million in assets, saw $61.4 million coming in. Their inverse fund also gained about $3 million. The smallest fund, the Leverage Shares 2x Long NVDA Daily ETF, couldn’t provide exact numbers but reported six times the normal trading volume, showing that many traders are interested in Nvidia. Paul Marino from Themes ETFs noted that by the end of Monday, investment flows turned positive and continued into Tuesday.
Leave a Reply