$NVIDIA (NVDA.US)$The latest boom has not only made waves among retail investors, but has also sparked an unprecedented boom in the leveraged ETF industry. GraniteShares Fund Offers Investors to Double Nvidia's$GraniteShares 2x Long NVDA Daily ETF (NVDL.US)$Over the past year, the increase reached an astonishing 450%, and last week's trading volume hit a new high of 4.7 billion US dollars. The fund was launched in December 2022 and has now reached US$2.8 billion. At the same time, track the underlying stock that has been shorted twice$GraniteShares 2x Short NVDA Daily ETF (NVD.US)$It's already down 86% this year, showing the market's strong confidence in Nvidia.

As representative of the world's “most important stock,” Nvidia's stock price hit a record high of $1,100 per share on Tuesday, and trading volume surged to double the 20-day average. This phenomenon was not driven by Nvidia's earnings report, but was affected by the so-called gamma squeeze effect, which further boosted the rise in the stock market.

Thousands of bullish contracts that are about to expire suddenly rose 1000% or more when the stock price opened sharply higher, forcing options traders who sold these contracts to adjust their hedging by buying more shares. This buying behavior created a positive feedback loop, which further boosted the stock price.

As speculative enthusiasm rises in the market, ETF creators such as GraniteShares are preparing to launch a range of new options strategies, covering everything from gold and big tech companies to$Bitcoin (BTC.CC)$and various other assets. Nvidia is becoming the new favorite of technology stock investors. The strong performance of its stock price is similar to Tesla's rise at the end of 2021. At that time, Tesla's stock price also experienced a similar parabolic rise.

It is worth mentioning that Nvidia's rise was boosted by Elon Musk, which added impetus to Nvidia's rise, especially after he challenged the artificial intelligence boom sparked by OpenAI. The post-earnings rally has increased the chipmaker's market capitalization by around $470 billion.

Will Lind, CEO of GraniteShares, said: “Three years ago, we were all talking about Tesla, but now the whole conversation is dominated by Nvidia. Nvidia is unquestionably the most important stock in the world right now, and we've built an ecosystem around it.”

According to Bloomberg Industry Research data, leveraged funds have accumulated inflows of 11 billion US dollars this year, which is expected to be the same as last year's 20 billion US dollars. Demand for this type of fund has increased as investors seek new investment tools to bet on the biggest themes in the market. However, leveraged funds have also received some criticism due to their high risk, and retail traders in particular are generally viewed as less mature than institutional traders.

GraniteShares has applied for at least 25 ETFs to track the performance of other single share ETFs with 2x and 3x daily leverage strategies. Linde emphasized, “What we are providing to the public is leverage in institutional pricing, which is a major breakthrough. But leverage comes with risk, and these products are not without risk.”

Further data showed that hedge fund exposure to US tech giants reached a record high. According to data from Goldman Sachs's institutional brokerage company, after Nvidia released earnings reports that exceeded expectations, the so-called “Magnificent Seven” — Nvidia,$Apple (AAPL.US)$,$Amazon (AMZN.US)$,$Meta Platforms (META.US)$,$Alphabet-A (GOOGL.US)$,$Tesla (TSLA.US)$und$Microsoft (MSFT.US)$——Currently, it accounts for about 20.7% of the total net exposure of hedge funds to the US single stock. This data further confirms Nvidia's position in the minds of technology stock investors and its importance in the current market environment.

Editor/Jeffrey