Surging Interest in Bearish ETFs as Nvidia's Stock Wavers

Interest in bearish leveraged ETFs for Nvidia is rising as the chipmaker faces high-stakes quarterly results, showing investor anxiety. While bullish ETFs still dominate in assets, bearish ETFs have seen greater relative growth recently. The disparity reflects growing concerns over Nvidia's market volatility.

Interest in leveraged ETFs that let investors profit when Nvidia's shares fall is increasing, data from product issuers reveals. Nvidia, the world's most valuable company, has become a key player in major stock indexes, making its quarterly results critical market events.

Recently, more investors have been leaning towards leveraged inverse ETFs, signaling doubts about Nvidia meeting earnings expectations. These bearish ETFs are designed to double daily losses, whereas bullish ETFs amplify daily gains. This trend underscores changing sentiments about Nvidia's future outlook.

The GraniteShares 2x Short NVDA Daily ETF, for instance, saw a 446% surge in outstanding shares, vastly outpacing the growth of its bullish counterpart. Similar trends are observed in ETFs from REX Shares and Tuttle Capital Management. Despite this, bullish ETFs still dominate in terms of assets and inflows.

(With inputs from agencies.)