Top Performing Leveraged/Inverse ETFs: 06/29/2025

Leveraged and inverse ETFs delivered substantial gains last week, led by the GraniteShares 2x Long COIN Daily ETF (CONL) with a 28.42% return, driven by a crypto industry rally fueled by positive capital market activity and regulatory developments. Semiconductor and tech-focused funds also saw strong performance, largely due to optimism surrounding potential easing of U.S. chip export restrictions to China and broader U.S.-China trade framework hopes. Concurrently, the ProShares UltraShort Bloomberg Crude Oil (SCO) gained 21.99% as oil prices stabilized on OPEC+ production news, while other funds tracking travel and high-beta sectors benefited from surging market confidence and positive economic indicators.

Analysis

Last week saw a significant risk-on rally concentrated in high-beta and thematic leveraged ETFs, with technology, cryptocurrency, and travel sectors showing pronounced strength. The crypto space led the gains, with the GraniteShares 2x Long COIN Daily ETF (CONL) surging 28.42% and the Defiance Daily Target 2X Long RIOT ETF (RIOX) climbing 19.34%, driven by a combination of rising Bitcoin prices and anticipated favorable U.S. legislation. The semiconductor industry was another focal point of bullish sentiment, as multiple ETFs including NVDU (+19.83%), SOXL (+18.75%), and USD (+17.19%) posted substantial returns on optimism that U.S. chip export curbs to China might be relaxed. This optimism extended to the broader tech market, where the FNGU ETN gained 18.18%, supported by a new U.S.-China trade framework and Canada's decision to scrap its digital tax. In a notable counter-trend move, the ProShares UltraShort Bloomberg Crude Oil ETF (SCO) returned 21.99%, capitalizing on the stabilization of oil prices following OPEC+'s announcement of plans to increase production.

Key Decisions for Investors

• Given the strong momentum in semiconductor and broad-tech leveraged ETFs, investors may consider tactical long exposure to these sectors, as performance is currently highly sensitive to positive news flow regarding U.S.-China trade and technology policies.
• Monitor developments in U.S. cryptocurrency regulation closely, as the outsized performance of CONL and RIOX indicates that legislative news is a primary short-term catalyst for significant price movements in digital asset-related equities.
• The success of the inverse crude oil ETF (SCO) highlights opportunities in tactical, event-driven commodity trades; consider monitoring OPEC+ production announcements as a potential catalyst for short-term positions that can hedge against or run counter to broader market trends.
• Recognize that the significant gains in these leveraged products are indicative of a high-risk appetite and are best used for short-term tactical positioning, given that their structure is designed for daily returns and can be subject to volatility decay over longer periods.