Gate ETF Leveraged Tokens: A powerful tool for capturing both bullish and bearish market trends during trending periods

Gate’s ETF leveraged tokens, as an innovative crypto trading tool, are redefining trading efficiency in trending markets. Over the past 30 days, their trading volume has reached approximately $5 billion, demonstrating strong market demand for this product.

With a major upgrade to the product matrix, Gate now supports 348 types of ETF leveraged tokens, covering a wide range of assets from mainstream coins to popular Meme coins, offering industry-leading 5x leverage, with a daily management fee of only 0.1%, making it highly competitive in terms of rates.

01 Product Core: The Balance of Efficiency and Simplicity

The core design philosophy of Gate ETF leveraged tokens is to find the optimal balance between amplifying returns and simplifying operations. Essentially, they are structured products that track the price of the underlying asset with a fixed leverage multiple.

Their operation logic is straightforward: after judging market direction, users only need to buy or sell the corresponding 3L (triple long) or 3S (triple short) tokens, just like spot trading.

All complex margin management, leverage rebalancing, and liquidation risks are automatically handled by the system in the background through daily rebalancing and instantaneous rebalancing during market volatility.

This mechanism effectively maintains the actual leverage ratio within the target range, providing users with a smoother trading experience.

02 Core Advantages: Why Do They Perform Exceptionally in Trends?

Compared to traditional contract leverage, Gate ETF leveraged tokens exhibit unique advantages in trending markets. They eliminate two of the most stressful obstacles in trading: liquidation risk and complex position management.

In clear unidirectional trends, their compounding effect is significant. The system automatically reinvests the previous day’s gains through daily rebalancing, creating a “snowball” amplification effect during continuous rises or falls. In contrast, traditional fixed leverage contracts, if not adjusted, will see leverage multiples change with profit and loss, making it impossible to maintain a consistent risk exposure.

Table: Core Differences Between Gate ETF Leveraged Tokens and Traditional Contract Leverage

03 Practical Scenarios: Precisely Capture Bull and Bear Opportunities

Understanding the product features, the key is to apply them correctly in the right market phases. Here are some of the most effective practical scenarios.

Efficiency Chase After Trend Confirmation: When key resistance levels are broken or support levels are breached, and market direction becomes clearer, it is an ideal time to use leveraged tokens. For example, after BTC volume breaks previous highs, buying BTC3L can efficiently chase the trend and avoid slow gains from spot holdings.

Short to Medium-term Swing Trading: ETF leveraged tokens are very suitable for trading cycles of 1 day to 1 week. This period can fully leverage trend momentum while avoiding net value erosion caused by long-term holding in choppy markets. It becomes a tactical tool for swing traders to quickly convert judgment into profits.

Responding to Extreme Sentiment Markets: When the market experiences strong unilateral sentiment due to sudden events—such as panic selling or FOMO buying—leveraged tokens can directly amplify the price movements caused by these emotions. Recently, in some popular Chinese Meme coin markets (like “I’m coming, damn it”), Gate quickly launched corresponding contracts and ETF leveraged products, allowing investors to participate conveniently in bull and bear battles at any stage of the trend.

04 Strategy Combinations: Advanced Play and Risk Avoidance

For mature investors, ETF leveraged tokens can be incorporated into more diverse strategy portfolios.

Combine with AI Tools: Gate’s Ultra AI trading robot can execute grid strategies using highly volatile ETF leveraged tokens. Data shows that a portfolio strategy targeting ETH5S (five times short ETH) achieved an annualized return of 181.74% over nearly 7 days. This demonstrates the huge potential of combining automated strategies with leverage products.

As a Hedging Tool: While holding spot long positions, investors can buy a small amount of corresponding short leverage tokens to hedge short-term market risks. Due to their non-liquidation feature, they are psychologically less stressful as hedging tools and easier to manage.

Clear Usage Boundaries: It must be clearly understood that this product is not a “magic key.” Frequent trading in sideways, non-directional markets will cause net value to be continuously eroded by the rebalancing mechanism. Similarly, holding it as a long-term asset is a misconception; its design is intended for trend swing trading.

05 Market Trends: Connecting TradFi with a Diversified Landscape

Gate is expanding the scope of ETF leveraged tokens from cryptocurrencies to broader asset classes. Currently, its products include precious metal tokens like XAUT (gold), PAXG (gold), as well as mainstream stock tokens like NVDA, TSLA.

This means investors can use the same tools to perform trend operations across crypto markets, precious metals, and US stock markets, achieving true cross-market diversification.

Gate Research Institute points out that as market volatility intensifies, investors’ demand for risk hedging and cross-market allocation also increases. The platform aims to provide a more comprehensive multi-asset hedging and strategy toolkit by integrating traditional finance and crypto markets.

Future Outlook

As the market emerges from chaotic oscillations into clear and powerful unidirectional trends, the codes ending with 3L and 3S on Gate’s trading interface will begin to shine with efficiency.

They do not generate new trends but can sharply amplify existing ones. This is the dividing line between mature traders seeking high-confidence “efficiency arbitrage” in trends and ordinary traders creating uncontrollable “random noise” in oscillations.

The most certain rule in the crypto world is that trends will return again after calm. When that happens, efficient tools will be the shortest path to transforming market insights into actual returns.