The cryptocurrency trading landscape continues to evolve, and GJ比特国际 (GJ Global) is stepping into the spotlight by launching its dedicated Leveraged ETF Zone. As of March 23, 2020, users can now trade BTC3L/USDT and BTC3S/USDT — 3x leveraged long and short exchange-traded funds tied to Bitcoin’s price movements. Accessible via the “Spot Trading – ETF Zone” section on the web platform, this new feature brings advanced financial tools to both novice and experienced traders.
But what exactly are leveraged ETFs? How do they work, and why should you care? Let’s break it down in a way that’s easy to understand, valuable for investors, and optimized for those seeking real-world utility in digital asset trading.
What Is a Leveraged ETF?
👉 Discover how leveraged ETFs can amplify your crypto gains with smart risk management.
A leveraged ETF (Exchange Traded Fund) is an innovative financial product designed to deliver multiples of the daily return of an underlying asset — in this case, Bitcoin (BTC). Unlike traditional spot trading, where a 1% move in BTC gives you a 1% gain (or loss), a 3x leveraged ETF aims to return ±3% for the same price change.
GJ比特国际’s leveraged ETFs are structured as perpetual products, meaning there's no expiration date. Denominated in USDT, these funds are actively managed by professional quantitative teams who handle rebalancing and risk mitigation automatically. This means investors don’t need to monitor margin levels or worry about sudden liquidations — a major advantage over conventional margin or futures trading.
Importantly, the net asset value (NAV) does not go to zero, and users can enter or exit positions at any time through the secondary market, making leveraged ETFs one of the most accessible ways to gain amplified exposure to crypto volatility.
Key Advantages of Leveraged ETFs
Why choose leveraged ETFs over regular spot or futures trading? Here are three compelling reasons:
1. Amplified Returns in Trending Markets
When Bitcoin enters a strong bullish or bearish phase, leveraged ETFs magnify your returns. For instance:
- If BTC rises 10%, a BTC3L (3x Long) ETF could generate approximately 30% in gains.
- Conversely, if BTC drops 10%, a BTC3S (3x Short) ETF may return around 30%.
This makes leveraged ETFs ideal for short-term directional bets during high-momentum periods.
2. Built-In Compounding Mechanism
Unlike fixed-leverage margin trades that require manual adjustments, GJ比特国际’s leveraged ETFs automatically rebalance to maintain a consistent 3x exposure. When profits accumulate, the system reinvests gains to increase exposure — effectively harnessing compound growth during sustained trends.
This dynamic allows investors to benefit from exponential returns without constant oversight.
3. No Risk of Liquidation
One of the biggest fears in leveraged trading is getting liquidated when prices move against you. Traditional 3x margin positions face liquidation after a ~33% adverse move. With GJ比特国际’s leveraged ETFs, that risk is eliminated.
Instead of forced closures, the fund manager reduces exposure during drawdowns and rebuilds positions as prices recover. This mechanism ensures continuity and protects capital during volatile swings — all while preserving the potential for recovery gains.
Understanding the Naming Convention
To avoid confusion, GJ比特国际 uses a clear naming system:
- BTC3L: Stands for Bitcoin 3x Long — profits when BTC price increases.
- BTC3S: Short for Bitcoin 3x Short — gains value when BTC declines.
This standardized format will extend to future offerings across other major cryptocurrencies.
Supported Underlying Assets
Currently, the leveraged ETF zone supports products tracking Bitcoin (BTC). However, based on market demand and conditions, GJ比特国际 plans to expand the lineup to include other popular digital assets such as Ethereum (ETH), Solana (SOL), and more in the near future.
👉 See how top traders use leveraged ETFs to maximize returns across multiple crypto assets.
How Is the Net Asset Value (NAV) Calculated?
Each leveraged ETF represents a share in a managed fund. The Net Asset Value (NAV) reflects the real-time value of each unit based on the underlying holdings and fees.
While the ETF trades on the secondary market (with a live market price), the NAV serves as a benchmark. Investors should be cautious if the market price significantly deviates from NAV, as this could lead to arbitrage losses.
Additionally, if the NAV falls below 0.05 USDT, GJ比特国际 may perform a reverse split (merger) — multiplying the NAV by 10 and reducing holdings proportionally. Your total portfolio value remains unchanged; this step improves pricing precision and trading efficiency.
Rebalancing Mechanism: How Leverage Is Maintained
Let’s take BTC3L as an example:
- Initial state: Each unit holds $3 worth of BTC with a NAV of $1.
- After a 1% rise in BTC price: The fund value increases to $3.03 → NAV becomes $1.03.
- However, leverage drops slightly below 3x → so the system buys an additional $0.06 worth of BTC.
- New total BTC holding: $3.09 → leverage restored to 3x.
This automatic rebalancing occurs throughout the day to maintain target leverage, adapting dynamically during both uptrends and downtrends.
Fee Structure: Transparent and Predictable
Trading leveraged ETFs involves two types of costs:
- Trading Fee: A standard 0.2% fee applies when buying or selling ETF shares — same as regular spot trades.
Daily Management Fee: A fee of approximately 0.1% per day per leverage level is deducted from the NAV at 00:00 UTC daily.
- For 3x ETFs: ~0.3% daily
- Only charged if you hold the position at the time of deduction
These fees cover operational costs, funding expenses, and rebalancing activities. They’re transparently reflected in the gradual decline of NAV over time, even if the underlying asset is flat.
Frequently Asked Questions (FAQ)
Q: Can I hold leveraged ETFs long-term?
A: While possible, leveraged ETFs are best suited for short- to medium-term trading due to daily rebalancing and compounding effects. Long-term holding may result in performance decay during volatile sideways markets.
Q: What happens during extreme market crashes?
A: Although designed to avoid liquidation, extremely sharp or prolonged downturns can push NAV close to zero. Always monitor your positions during high-volatility events.
Q: Are there withdrawal or deposit fees for ETFs?
A: No. Leveraged ETFs are traded like regular spot pairs — no separate deposit/withdrawal functions apply.
Q: How often is rebalancing done?
A: Rebalancing occurs in real-time, triggered by price movements and volatility thresholds — not on a fixed schedule.
Q: Can I use stop-loss or take-profit orders?
A: Yes! Since ETFs trade like normal spot pairs, you can set limit, market, stop-loss, and trailing stop orders.
Final Thoughts: Power Meets Simplicity
Leveraged ETFs represent a powerful convergence of simplicity and performance. With GJ比特国际’s launch of BTC 3x long and short products, traders now have a user-friendly tool to capitalize on market momentum — without managing margin ratios or fearing sudden liquidations.
Whether you're riding a bull run or hedging against a correction, these instruments offer flexibility, automation, and enhanced returns — all within a secure and regulated framework.
👉 Start exploring leveraged ETFs today and unlock new dimensions in crypto trading performance.
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