• Over the past two years, exchanges have significantly reduced and eliminated ETF products; with fewer exchanges offering stable trading, Gate's continued supply of ETF products has become a scarce competitive advantage.
• Gate is not only making ETFs, but also creating a mature product line that is scalable, transparent, explainable, low-cost, and standardized.
• Gate supported trading in 244 ETF leveraged tokens throughout 2025, with a cumulative user base of approximately 200,000 and daily trading volume reaching hundreds of millions of dollars.
I. Current Market Situation
In the context of cryptocurrency trading, ETFs refer to leveraged tokens offered by exchanges. These tokens encapsulate perpetual contract positions and allow users to gain long or short exposure with a target leverage by simply "buying and selling one coin." However, the supply of ETF leveraged tokens on crypto exchage has significantly contracted in the past two years. For example, B** suspended leveraged token trading, subscriptions, and redemptions in stages from February to April 2024 and eventually stopped supporting them. B** also announced the delisting of some leveraged tokens in 2024, ceasing spot trading, subscriptions, and redemptions, and continued to delist leveraged token pairs such as BTC and ETH in 2025. K** issued a series of announcements at the end of 2025, delisting multiple sets of leveraged tokens in batches and carrying out a phased liquidation of BTC leveraged token trading/subscription/redemption services.
The delisting of ETF leveraged tokens by exchanges is not due to a lack of user demand for leverage, but rather because leveraged tokens are highly structured products. Without sufficient disclosure mechanisms, risk control systems, and user education, they can easily be misused as fixed-multiplier tools for long-term holdings. This can lead to significant path dependence and volatility attrition in volatile market conditions, resulting in concentrated complaints and product controversies. Against the backdrop of industry compliance and declining risk appetite, many platforms have chosen to eliminate such complex product categories, resulting in a decreasing number of mainstream exchanges that stably offer ETF leveraged token trading.
Conversely, this also means that for platforms like Gate that are still persisting and continuously iterating on this category, the supply of products is itself a scarce competitive advantage; and because there are fewer similar platforms, users have fewer alternative entry points, making it easier for liquidity and trading users to concentrate on Gate, thus absorbing more short-term leverage demand.
II. Product Form
The core design of Gate ETF leveraged tokens is to map the underlying perpetual contract leveraged positions to a tokenized product that can be directly bought and sold on the spot market through net asset value mapping. For users, the trading experience is more like spot trading, requiring no margin and eliminating the need to manage margin and liquidation thresholds like with contracts. Furthermore, costs are packaged at the "product layer." Gate explicitly discloses that leveraged tokens will incur a 0.1%/day management fee, which covers contract trading costs, funding rates, and slippage incurred from hedging.
Leveraged tokens are not intended to replace contracts, but rather to transform leverage from a professional tool into a tactical tool, particularly suitable for two typical needs:
• Trending Market: When the market exhibits a strong one-sided trend, leveraged tokens will amplify the exposure and maintain the target leverage level through a rebalancing mechanism.
• Leveraged participation where you don't want to manage liquidation lines: Users don't need to monitor margin, add to positions, or face forced liquidation risks like with contracts. Of course, this doesn't mean there's no risk; it simply shifts the risk from forced liquidation to the net asset value path and rebalancing losses.
Overall, leveraged ETF tokens are suitable for short-term, high-trend scenarios, rather than long-term holdings.
III. Mechanism Deconstruction
The two most important variables for leveraged tokens are rebalancing and net asset value (NAV) path. Gate has provided clear rules and parameters in its mechanism disclosure, which in itself is an important signal of the maturity of Gate's leveraged token product.
3.1 Rebalancing Time and Triggering Rules
Gate's 3x/5x leveraged tokens are rebalanced periodically at 0:00 daily (UTC +8).
Furthermore, Gate has clarified the leverage fluctuation range that "does not trigger rebalancing," which directly determines how frequently the product will adjust its positions and incur transaction costs in a volatile market.
• 3x Long: If the lever is between 2.25x and 4.125x, it will usually no longer be balanced; if it exceeds the range or meets the conditions, it will be adjusted back to 3x.
• 3x Short: The range is 1.5x–5.25x.
• 5x: No position adjustment when leverage is in the range of 3.5–7x.
• In addition, Gate will merge or split shares when the price of some ETFs is too low and affects trading accuracy. This will change the number of shares and the net asset value per unit, but will not change the total value of the shares.
These parameters are hardcore, but they are exactly what professional users care about: the narrower the range and the more frequent the triggers, the more obvious the oscillation loss usually is; the more reasonable the range and the more transparent the disclosure, the more users can use the product as a calculable and predictable tool.
3.2 Management Fees and Transaction Costs
Gate consolidates all costs into a single management fee of 0.1% per day, the lowest rate among major exchanges. This management fee includes all costs, covering funding rates, transaction fees, and potential slippage during the contract hedging process.
For users, Gate's clear and consistent pricing structure significantly improves cost visibility. This allows transaction costs, which were previously dispersed at the contract level in the form of funding rates, slippage, and rebalancing frictions, to be more centrally mapped into changes in net asset value, reducing attribution bias caused by hidden costs.
IV. Advantages of Gate ETF
While the industry chooses to reduce complex product categories, Gate continues to develop its ETF leveraged tokens into a scalable, systematic, and explainable product line, and uses a more transparent disclosure mechanism to reduce the cost of misuse, thereby transforming scarce supply into liquidity and user stickiness.
4.1 Scale and Supply
For Gate, ETF leveraged tokens are not just a feature, but one of its core components.
According to Gate's 2025 Annual Report:
• Gate supports trading 244 leveraged ETF tokens and continues to add and cover more assets, making it one of the exchanges that supports the most leveraged tokens.
• The Gate ETF is projected to have approximately 200,000 trading users throughout 2025, with daily trading volume reaching hundreds of millions of US dollars.
• Gate ETF continues to iterate on product features, and has successively launched modules such as multi-dimensional data dashboards, rebalancing record display and beginner education to help users get started quickly and continuously optimize user decision-making efficiency and overall trading experience.
While exchanges like B** and K** ceased leveraged token trading and continued to delist similar products, Gate.com expanded and deepened its product offerings and trading activity, creating a clear structural advantage. In the future, Gate.com will launch portfolio ETFs and low-leverage inverse ETFs, continuously using technology to optimize and reduce costs, and expand more robust leverage options.
4.2 Clear mechanism disclosure and explainability
Whether leveraged tokens can be successful in the long run doesn't solely depend on the number of underlying assets they're listed on, but rather on whether the product can be explained—this is the fundamental barrier to entry for large-scale operations. Gate provides granular disclosure of rebalancing timings, trigger ranges, and management fee coverage. Gate maintains a more transparent approach to disclosure, transforming highly controversial products into computable tools; this kind of explainability is precisely the most scarce capability during market downturns.
4.3 Reduce complexity to the platform and leave transaction certainty to the user.
Gate has reduced its costs to a mere 0.1% daily management fee, explicitly covering hedging-related expenses. This is what Gate does: the platform leverages its expertise to handle the greater complexity of trading and hedging execution, resulting in a lower barrier to entry and more consistent cost expectations for users. At a time when the industry generally seeks to reduce the supply of complex products, this product strategy of leaving the complexity to the platform and the certainty to the user is a crucial value orientation for continuously expanding market share.
V. Summary
The reason why leveraged tokens have shifted from widespread supply to supply contraction in the industry is not primarily because users don't need leverage, but rather because platforms struggle to simultaneously satisfy three things: explainable rules, consistent cost accounting, and sustainable risk control and aftercare. Gate's advantage lies precisely in systematizing these three aspects during market downturns: using clear rebalancing thresholds and net asset value-anchored disclosures to reduce the potential for misuse; using a uniform management fee of 0.1% per day and absorbing the cost gap, leaving complexity to the platform and certainty to users; and further enhancing this with large-scale product coverage and a mature delisting and repurchase process, making Gate ETF not just a feature, but a long-term viable leveraged product system.
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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 any assets and products they intend to purchase before making any investment decisions. Gate assumes no responsibility for any loss or damage arising from such investment decisions.
