{"id":20498,"date":"2025-04-03T18:46:32","date_gmt":"2025-04-03T18:46:32","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=20498"},"modified":"2025-04-03T18:46:32","modified_gmt":"2025-04-03T18:46:32","slug":"textbook-lesson-this-leveraged-etf-plunged-73-since-inception-a-warning-for-crypto-investors","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=20498","title":{"rendered":"Textbook Lesson: This Leveraged ETF Plunged 73% Since Inception \u2013 A Warning For Crypto Investors?"},"content":{"rendered":"<div>\n<p>The <strong>Defiance Daily Target 2X Long RIOT ETF<\/strong> (NYSE:<a class=\"ticker\" href=\"https:\/\/www.benzinga.com\/stock\/RIOX#NYSE\">RIOX<\/a>), launched to double the daily returns of Bitcoin mining company <strong>Riot Platforms Inc.<\/strong> (NASDAQ:<a class=\"ticker\" href=\"https:\/\/www.benzinga.com\/stock\/RIOT#NASDAQ\">RIOT<\/a>), has lost its value by as much as 73% in the three months.<\/p>\n<p>The fund only <a href=\"https:\/\/www.benzinga.com\/etfs\/emerging-market-etfs\/25\/01\/42851198\/riot-cryptomining-success-spurs-investor-interest-with-defiances-new-etf\">started trading on Jan. 2<\/a>. <\/p>\n<p>This sharp fall highlights the high risks involved with <a href=\"https:\/\/www.benzinga.com\/etfs\">leveraged ETFs<\/a>, especially those that deal with the <a href=\"https:\/\/www.benzinga.com\/crypto\">highly volatile cryptocurrency market<\/a>.<\/p>\n<p>RIOX attempted to offer its investors double the percentage change in the stock price of crypto miner Riot Platforms. <\/p>\n<p>The ETF has since suffered huge losses following a sudden drop in Riot\u2019s stock price.<\/p>\n<p><strong>Also Read: <a href=\"https:\/\/www.benzinga.com\/25\/03\/44301936\/bitcoin-miners-ride-the-btc-boom-but-costs-tell-a-different-story-jpmorgan\">Bitcoin Miners Ride The BTC Boom, But Costs Tell A Different Story: JPMorgan Analyst<\/a><\/strong><\/p>\n<h2 class=\"wp-block-heading\"><strong>What\u2019s To Blame<\/strong>?<\/h2>\n<p>The ETF\u2019s investment strategy, using a 2x daily leverage on Riot stock, is one of the key reasons for its sharp fall. Leverage increases not only daily &#8230;<\/p>\n<p><a href=\"https:\/\/www.benzinga.com\/25\/04\/44633773\/textbook-lesson-this-leveraged-etf-plunged-73-since-inception-a-warning-for-crypto-investors\" alt=\"Textbook\" lesson: this leveraged etf plunged since inception a warning for crypto investors>Full story available on Benzinga.com<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Defiance Daily Target 2X Long RIOT ETF (NYSE:RIOX), launched to double the daily returns of Bitcoin mining company Riot Platforms Inc. (NASDAQ:RIOT), has lost its value by as much as 73% in the three months. The fund only started trading on Jan. 2. This sharp fall highlights the high risks involved with leveraged ETFs, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-20498","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/20498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20498"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/20498\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}