Gate ETF Leveraged Tokens: A Diversified Asset Allocation Tool Surpassing BTC and ETH

For traders looking to amplify their gains in the crypto market, leveraged tokens offer a convenient solution. These innovative financial products automatically magnify the price movements of the underlying assets through built-in leverage mechanisms, providing users with the opportunity to achieve higher potential returns in volatile markets.

01 Core Asset Coverage

Gate ETF leveraged tokens are primarily anchored to mainstream cryptocurrencies. As the cornerstone of the crypto market, Bitcoin and Ethereum are naturally the most important underlying assets for leveraged tokens.

Whether it’s tracking Bitcoin’s 3x bullish position with BTC3L or Ethereum’s 5x bearish position with ETH5S, these products meet the fundamental need for users to leverage their core asset allocations.

Understanding ETF leveraged tokens hinges on their “fund shares” nature. When users purchase ETF leveraged tokens on the Gate platform, they are not trading spot digital currencies but shares of the corresponding fund.

The price of these shares is determined by the fund’s net asset value (NAV), which fluctuates dynamically with the underlying asset prices and the target leverage multiple.

02 Expanding Asset Landscape

Beyond cryptocurrencies, Gate ETF leveraged tokens are extending their reach into a broader range of traditional assets. According to the latest official announcement in January 2026, Gate now fully supports two important categories of emerging asset tokens.

These tokens digitize ownership of physical gold, representing claims to physical gold assets.

Currently supported gold tokens include XAUT and PAXG. These products enable investors to conveniently allocate gold assets on crypto platforms and leverage gold price volatility to amplify returns.

Stock tokens serve as a bridge connecting traditional financial markets with the crypto world. Gate ETF now supports mainstream stock tokens including NVDA and TSLA.

Through ETF leveraged tokens, investors can leverage their investments in these tech giants’ stock prices without leaving the crypto platform.

03 Market Size and Trading Activity

Gate ETF leveraged tokens have established a quite active trading market. According to official data, their trading volume in the past 30 days has reached approximately $5 billion, demonstrating strong market demand and liquidity.

In terms of product coverage, Gate ETF currently supports 256 tokens, making it one of the leading mainstream trading platforms supporting the most leveraged tokens.

Regarding trading popularity, besides leveraged tokens around BTC and ETH, some other tokens’ leveraged products also perform well.

For example, DOGE5L and similar products have become popular targets for user participation, reflecting market demand for diversified types of leveraged tokens.

04 Operating Mechanism and Risk Management

Gate ETF leveraged tokens employ a unique rebalancing mechanism to manage risk. The platform performs scheduled rebalancing at 0:00 daily, which is a routine operation to maintain the target leverage multiple.

When market conditions fluctuate sharply, the system will trigger instant rebalancing, automatically bringing the actual leverage back to the target level.

This mechanism effectively avoids the forced liquidation risks that can occur in traditional leveraged trading during extreme market conditions, providing users with a more controllable trading experience.

The calculation of ETF leveraged token NAV follows a specific formula: NAV = previous rebalancing point NAV × {1 + underlying asset price change × target leverage}.

It is worth noting that the actual trading price of ETF leveraged tokens in the secondary market may deviate slightly from NAV due to supply and demand, but the platform displays both NAV and the latest transaction price to help users make informed decisions.

The platform also has split and merge mechanisms for ETF leveraged tokens. When NAV falls below a certain threshold, a merge operation is performed; when NAV exceeds a certain threshold, a split is carried out.

These operations aim to optimize trading experience and ensure that the total value of assets held by users remains unaffected.

Gate’s ETF leveraged token ecosystem has expanded from initial cryptocurrencies to include precious metals and stock markets. The platform’s 256 tokens and approximately $5 billion in monthly trading volume together form an active and diverse leveraged trading ecosystem.

During market volatility, the built-in rebalancing mechanism acts like an automated risk manager, silently maintaining leverage stability. Every investor’s choice is at the intersection of traditional finance and the crypto world, seeking a new balance point.