Gate ETF Product Comprehensive Analysis: Seizing Leveraged and Diversified Encryption Investment Opportunities

In the traditional investment field, ETFs (exchange-traded funds) are favored for their ability to track indices and diversify risks, being regarded as the preferred tool for conservative investors. As market dynamics accelerate, traditional ETFs have struggled to meet traders' demands for leverage and efficiency.

01 Product Overview

Gate ETF is a type of innovative investment tool launched by the Gate exchange, aimed at meeting the needs of users with different risk preferences and investment strategies.

Essentially, these products enable users to participate in the crypto market in a more streamlined and efficient way, whether they are seeking stable returns or hoping to amplify short-term market gains.

The most representative is the Gate Leveraged ETF. This type of product automatically manages the underlying perpetual contract positions through a system, providing users with a fixed leverage multiple (such as 3x or 5x).

Users can achieve leveraged investment by simply operating like buying and selling regular spot tokens, without the need to personally manage margin, handle borrowing, or worry about the risk of forced liquidation due to insufficient margin.

02 Main Types and Characteristics

Gate offers a diverse range of ETF products to meet different needs from broad market exposure to niche sector investments.

In addition to the products mentioned above, Gate also offers strategic tools such as crypto derivatives ETF. For example, Gate's crypto derivatives ETF has appreciated over 130% in the past five years, outperforming the S&P 500 index during the same period (82%), but its volatility has also been significantly higher.

03 Core Operating Mechanisms and Advantages

Understanding the operation mechanism of Gate ETF, especially leveraged ETFs, is key to using them effectively.

The operation of leveraged ETFs relies on a sophisticated system. Its underlying positions are constructed by holding perpetual contracts, and the system automatically executes a “rebalancing” operation daily, adjusting the contract positions according to market fluctuations to ensure that the leverage ratio remains within the set target range (such as 3 times).

To maintain this mechanism, the platform will charge a daily 0.1% management fee, used to cover rebalancing, pay contract funding rates, and hedge costs. This greatly simplifies the user experience.

No need to touch contracts, and no need to understand the logic of borrowing and leverage operation, you can achieve leverage effect by simply buying and selling tokens in the spot market. In a market with clear trends, the core advantage brought by the leverage multiplier is amplifying profits.

More importantly, since all contract positions are managed uniformly by the system, the product is designed to eliminate the risk of liquidation found in traditional leveraged trading. If the trend continues, the rebalancing mechanism will also expand positions in the direction of the trend, bringing about a positive effect similar to “rolling amplification.”

04 Strategies and Risk Tips

Any investment tool is a double-edged sword, and Gate ETF is no exception. Clearly understanding its applicable scenarios and potential risks is a prerequisite for rational investment.

Leveraged ETFs are particularly suitable for short-term markets with clear trends. In markets that are frequently consolidating or oscillating, daily rebalancing operations can result in a “decay effect,” eroding investment performance.

In addition, all leveraged ETF users must be aware that: its final return will not be exactly linear to the precise multiple of the underlying asset's price fluctuations. Management fees, rebalancing slippage, and other factors can affect long-term performance.

For non-leveraged thematic ETFs (such as DeFi Innovation ETF), although the long-term growth potential is considerable (with an average annual return of over 18% in the past five years), its volatility is also much higher than that of the market. This requires investors to have a longer investment horizon and a stronger risk tolerance.

An important step before choosing any Gate ETF is to carefully read its investment composition. For example, some high-yield ETFs may invest in stocks with questionable quality or in turbulent regions to achieve high dividend yields, which may not perform well in terms of long-term capital appreciation.

Future Outlook

When Bitcoin falls below $90,000 again at the end of 2025, a user account utilizing Gate 5x leveraged ETF will see its asset curve nearly vertical upwards. Three weeks prior to the market getting stuck, he had converted all of the same tokens into the Gate total crypto market ETF, with the net asset value only slightly fluctuating like a calm lake surface. He switched not only products but also transformed from an aggressive hunter to a steady guardian.