Investors Warned of Potential Systemic Shock from Leveraged NVDA ETFs
The use of explicit leverage by some investors has led to an increase in risky securities, similar to the pre-global financial crisis period. This could result in another deleveraging-driven meltdown, with explicit and implicit leveraged positions in stocks like NVDA being particularly vulnerable. Leveraged single stock ETFs, such as NVDL, have been criticized for potentially violating the spirit of ETFs, and despite their legal status, they pose a risk to the market due to their high volatility and potential for systemic risk. Investors are advised to consider hedging against a potential shock by building protection into their portfolios.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitget Builders stories: The architect behind Bitget's 30M views!
Bitget Trading Club Championship (Phase 10)—Trade spot and futures to share 120,000 BGB, up to 2200 BGB per user!
0G (0G, Zero G) Simple Earn Product Launches—Subscribe now to enjoy up to 30% APR!
Announcement on Bitget listing MSFTUSDT STOCK Index perpetual futures
Trending news
MoreCrypto prices
More








