Investors bet on Nvidia share recovery with buying of leveraged ETFs
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Short-term traders are proving eager to bet on a rapid recovery in Nvidia, pouring money into the three largest leveraged exchange-traded funds which are linked to gains in the share price of the AI chipmaking giant. Speculators and traders flocked to buy leveraged funds which aim to deliver double the daily return in Nvidia, asset managers said on Tuesday. The company's stock suffered the biggest one-day fall in market capitalization in history on Monday in response to news that China's DeepSeek launched a new artificial intelligence model. "We had about $1 billion of inflows into our long product," said Will Rhind, founder and CEO of GraniteShares, referring to the largest of these funds, the GraniteShares 2x Long NVDA Daily ETF. That wasn't enough to offset the impact of Nvidia's massive selloff on its assets, which shrank to about $4.3 billion from a high north of $6 billion last year. Each of the four Nvidi...