• In the past two years, exchanges have significantly reduced and phased out ETF categories; against the backdrop of fewer exchanges capable of stable trading, Gate's continuous provision of ETF product trading has become a rare competitive advantage.
• Gate is not only focused on ETFs but has also developed a mature product line that is scalable, transparent, explainable, and cost-effective.
• Gate will support trading of 244 ETF leveraged tokens throughout 2025, with approximately 200,000 cumulative users and an average daily trading volume reaching hundreds of millions of dollars.
I. Market Status
In the context of crypto trading, ETFs refer to leveraged tokens launched by exchanges (ETF Leveraged Tokens), which package perpetual contract positions into a token form that can be directly bought and sold on the spot market, allowing users to gain targeted leverage exposure by "buying and selling a coin." However, the supply of ETF leveraged tokens has significantly contracted on the supply side in crypto exchanges over the past two years. For example, B** suspended leveraged token trading, subscription, and redemption in phases from February to April 2024, ultimately ceasing support; B** also announced the delisting of certain leveraged tokens in 2024, stopping spot trading, subscription, and redemption, and continued to push for the delisting of leveraged token pairs like BTC and ETH in 2025; K** announced the phased delisting of multiple leveraged tokens at the end of 2025 and implemented a phased withdrawal of services for BTC leveraged token trading/subscription/redemption.
The delisting of ETF leveraged tokens by exchanges does not stem from a lack of user demand for leverage, but rather because leveraged tokens are highly structured products. Without sufficient mechanism disclosure, risk control systems, and user education, they can easily be misused as fixed multiple tools for long-term holding, leading to significant path dependence and volatility loss in fluctuating markets, resulting in concentrated complaints and product disputes. In the context of industry compliance and declining risk appetite, many platforms have chosen to cut such complex categories, making mainstream exchanges that can stably provide ETF leveraged token trading increasingly rare.
Conversely, this also means that for platforms like Gate, which continue to insist on and iterate this category, the product supply itself is a rare competitive advantage; and as similar platforms decrease, users have fewer alternative entry points, making liquidity and trading users more likely to concentrate on Gate, accommodating more short-term leveraged demand.
II. Product Form
The core design of Gate's ETF leveraged tokens is to map the underlying perpetual contract leveraged positions into a tokenized product that can be directly traded on the spot market. For users, it feels more like spot trading, requiring no margin and not needing to manage margin and liquidation lines like contracts. Additionally, costs are packaged in a "product layer" manner, with Gate clearly disclosing that leveraged tokens will incur a management fee of 0.1% per day, which covers the contract trading costs, funding rates, and slippage incurred during hedging.
Leveraged tokens are not meant to replace contracts but to transform leverage from a professional tool into a tactical tool, especially suitable for two typical needs:
• Trend markets: When the market exhibits a strong unilateral trend, leveraged tokens will amplify exposure and maintain the target leverage through a rebalancing mechanism.
• Leveraged participation without managing liquidation lines: Users do not need to monitor margin, make additional deposits, or face liquidation risks like with contracts. Of course, this does not mean there is no risk; it merely shifts the risk form from liquidation to net value path and rebalancing loss.
Overall, ETF leveraged tokens are suitable for short cycles and strong trend scenarios, rather than long-term holding.
III. Mechanism Breakdown
The two most important variables for leveraged tokens are rebalancing and net value path. Gate has provided clear rule parameters in its mechanism disclosure, which itself is an important signal of Gate's product maturity in leveraged tokens.
3.1 Rebalancing Time and Trigger Rules
Gate's 3x/5x leveraged tokens have scheduled rebalancing, occurring daily at 0:00 (UTC +8).
Additionally, Gate has further clarified the leveraged fluctuation range that does not trigger rebalancing, which directly determines how frequently the product will adjust positions and incur friction costs in a fluctuating market:
• 3x Long: If leverage is between 2.25x and 4.125x, it typically will not rebalance; exceeding the range or meeting conditions will adjust back to 3x.
• 3x Short: The range is 1.5x to 5.25x.
• 5x: When leverage is within the 3.5 to 7x range, no position adjustment occurs.
• Furthermore, Gate will merge or split shares when the price of certain ETFs is too low to affect trading accuracy, which will change the number of holdings and unit net value but not the total value of holdings.
These parameters are quite rigorous, but they are precisely what professional users care about: the narrower the range and the more frequent the triggers, the more apparent the volatility loss typically is; the more reasonable the range and the more transparent the disclosure, the more users can treat the product as a calculable and predictable tool.
3.2 Management Fees and Trading Costs
Gate consolidates cost items into a 0.1% per day management fee, which is the lowest rate among mainstream exchanges, and this management fee already includes all costs, covering funding rates, trading fees, and potential slippage during the contract hedging process.
For users, Gate's clear and unified, explainable, and low-cost fee structure significantly enhances cost visibility, allowing trading costs that would originally occur in a dispersed manner at the contract level—such as funding rates, slippage, and rebalancing friction—to be more centrally reflected in net value changes, reducing the attribution bias of returns caused by hidden costs.
IV. Advantages of Gate ETF
When the industry chooses to reduce complex categories, Gate continues to develop ETF leveraged tokens into a scalable, systematic, and explainable product line, using more transparent mechanisms to reduce misuse costs, thereby transforming scarce supply into liquidity and user stickiness.
4.1 Scale and Supply
For Gate, ETF leveraged tokens are not just a functional point but one of the core segments.
According to Gate's 2025 annual report:
• Gate supports trading of 244 leveraged ETF tokens and continues to launch and cover more assets, making it one of the exchanges with the most leveraged tokens.
• Gate ETF had approximately 200,000 trading users throughout 2025, with an average daily trading volume reaching hundreds of millions of dollars.
• Gate ETF is continuously iterating on product functionality, having successively launched multi-dimensional data dashboards, rebalancing record displays, and beginner education modules to help users get started quickly, continuously optimizing user decision-making efficiency and overall trading experience.
As B** stops leveraged token trading and exchanges like B** and K** continue to delist similar products, Gate has instead deepened its variety and trading activity, forming a clear structural advantage. In the future, Gate will introduce combination ETFs and low-leverage inverse ETFs, continuously using technology to optimize and reduce costs, expanding more robust leveraged expressions.
4.2 Clear Mechanism Disclosure and Explainability
Whether leveraged tokens can be sustained long-term does not solely depend on how many underlying assets are included, but rather on whether the product can be explained, which is a fundamental threshold for scaling up. Gate has provided granular disclosures on rebalancing time points, trigger ranges, and management fee coverage. Gate maintains a more transparent rule disclosure, turning high-controversy products into calculable tools; this kind of explainability is the most scarce capability during market downturns.
4.3 Compressing Complexity for the Platform, Leaving Certainty for Users
Gate consolidates costs into a 0.1% per day management fee and clearly covers hedging-related expenses. This is what Gate is doing: the platform takes on greater trading and hedging execution complexity with professional expertise, allowing users to have a lighter operational threshold and more consistent cost expectations. In a phase where the industry generally seeks to reduce the supply of complex products, this product route of leaving complexity to the platform and certainty to users is an important value orientation that can continuously expand market share.
V. Conclusion
The reason leveraged tokens in the industry have shifted from widespread supply to supply contraction is not fundamentally that users do not need leverage, but that platforms find it difficult to simultaneously meet three requirements: explainable rules, unified cost standards, and sustainable risk control and aftermath management. Gate's advantage lies precisely in systematizing these three aspects during the market downturn: using clear rebalancing thresholds and net value anchoring disclosures to reduce misuse space; employing a unified management fee of 0.1% per day and covering cost gaps, leaving complexity to the platform and certainty to users; and adding large-scale variety coverage and mature delisting and repurchase processes, making Gate ETF not just a functional point but a leveraged product system capable of long-term operation.
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Disclaimer
Investing in the cryptocurrency market involves high risks. Users are advised to conduct independent research and fully understand the nature of the assets and products they purchase before making any investment decisions. Gate is not responsible for any losses or damages resulting from such investment decisions.
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