Gate ETF Unveiled: How to Capture Amplified Gains in the Crypto Market More Intelligently

When the cryptocurrency market enters a clear trending phase, leverage is undoubtedly an efficient tool to amplify returns. The emergence of Gate Leveraged ETF Tokens allows ordinary investors to participate in the market in a more intuitive way without facing the complexities of margin management and liquidation risks associated with traditional leveraged trading.

As of December 2025, Gate manages assets totaling up to $7.2 trillion, offering over 86 types of crypto investment products, including leveraged ETFs, to build a comprehensive product matrix catering to different risk preferences.

01 Product Evolution: From Market Tracking to Strategy Enhancement

The traditional role of ETFs (Exchange-Traded Funds) is to track market performance, allowing users to diversify risk by buying and selling a basket of assets. In the highly volatile crypto market, simply tracking is no longer sufficient to meet investors’ demands for efficiency and strategy.

Leveraged ETF has emerged to enable investors to avoid dealing with complex derivative contracts while achieving amplified asset volatility.

Gate’s leveraged ETF tokens are essentially supported by perpetual contract positions as the underlying. The system maintains fixed leverage multiples such as 3x or 5x through precise mechanisms.

The biggest difference from traditional leverage trading is that users do not need to manage margin themselves or borrow funds, thereby completely avoiding liquidation risks caused by insufficient margin.

02 Core Mechanism: Systematic Operation to Maintain Leverage Stability

Understanding the operation logic of Gate Leveraged ETF is a prerequisite for effective use. Its core lies in an automated system that ensures continuous provision of the preset leverage effect.

The daily automatic rebalancing mechanism is the technical core of the product. To prevent market volatility from causing the leverage to deviate from the set multiple, the system automatically adjusts the underlying contract positions at fixed times.

For example, when the underlying asset rises, the net asset value of the leveraged ETF increases, and the system will automatically increase the long contract position to maintain the fixed leverage ratio.

This mechanism can create a “rolling amplification” effect in unilateral trending markets, potentially generating returns beyond linear multiples. Its operation is not without cost; the platform charges a daily management fee of 0.1% to cover ongoing expenses such as contract rebalancing, funding rates, and slippage losses.

03 Product Matrix: Beyond Leverage, Diversified Options

Gate offers far more than leveraged products; its rich product line can meet a range of investment strategies from conservative to aggressive. The following table outlines some core Gate ETF and fund products.

In addition to leveraged products, Gate Crypto Market Index Funds serve as foundational holdings, including core assets like Bitcoin and Ethereum. The Gate Total Crypto Market Fund holds over 3,000 assets, offering extreme diversification.

04 Practical Guide: Three Steps to Start Trading Gate ETF

Regardless of which Gate ETF you choose, the trading experience is designed to be as simple as spot trading. Here are the key steps to start trading.

Step 1: Access the Trading Section. In the Gate App, click 【Spot】-【ETF】 to enter the product page. On the web, you can access the “Leveraged ETF” section via the “Trading” menu on the homepage.

Step 2: Filter and Select Products. In the ETF section, you can use filter tags or directly search for keywords like “BTC 3x” to quickly find target leveraged tokens or other ETF products.

Step 3: Place Orders and Confirm. After selecting a product, enter the price and quantity on the trading page, then click buy. Once the order is filled, your position will appear in the assets page; unfilled orders can be checked under “Current Orders.”

05 Risk Perspective: Costs and Wear Behind Efficiency

Leverage and returns go hand in hand; understanding the risks clearly is essential for rational use of Gate ETF.

The primary risk is that volatility is magnified multiple times. This means losses can also accelerate in speed and magnitude. In choppy markets, the “wear and tear effect” is particularly prominent: daily rebalancing causes the system to repeatedly adjust positions during price swings, which can gradually erode principal.

Another often overlooked risk is long-term holding costs. The daily 0.1% management fee accumulates over time and is reflected in the token’s net asset value. Additionally, due to rebalancing and market factors, the long- and medium-term performance of the product usually will not exactly match the fixed multiples of the underlying asset’s gains or losses.

Therefore, leveraged ETFs are explicitly designed as short-term trend trading tools, not long-term holding assets.

Future Outlook

Gate’s ETF product line functions like a toolbox. When the market enters a strong unilateral trend, 3x or 5x leveraged tokens are powerful tools for aggressive moves.

When the market direction is uncertain or when building long-term core positions, near-zero fee broad-based index funds become a stable ballast. Market conditions in 2025 show signs of easing in the approval standards for crypto ETFs, indicating that more diverse products will soon connect traditional finance with digital assets in the future.