GraniteShares 2x Long NBIS ETF Plunges 34.03% to $37.70
NBIL•GraniteShares 2x Long NBIS Daily ETF (NBIL) plunged 34.03% to $37.70 on July 1, its steepest one-day drop while tracking double daily returns of Nebius Group N.V. shares. This dramatic swing illustrates the high volatility and risk profile of leveraged ETFs that magnify daily market movements.
1. NBIL One-Day Plunge
On July 1, GraniteShares 2x Long NBIS Daily ETF (NBIL) fell 34.03% to $37.70 in a single session, marking its sharpest daily decline since launch. The ETF tracks twice the daily performance of Nebius Group N.V., causing losses to amplify when the underlying shares move downward.
2. Leveraged Structure and Risk
NBIL employs derivatives and borrowing to deliver 2x daily returns of Nebius Group N.V. stock. While this can boost gains when markets rise, it also compounds losses during downturns, making it unsuitable for long-term buy-and-hold strategies.
3. Peer ETF Performance
Other leveraged products experienced similar volatility: Leverage Shares 2x Long NBIS Daily ETF dropped 34.02%, Leverage Shares 2x Long CRWV Daily ETF declined 27.45%, and Leverage Shares 2X Long GLW Daily ETF fell 26.86%. These widespread losses underscore broader market tremors in leveraged vehicles.
4. Investor Implications
The extreme price swings highlight the importance of active monitoring and risk management when trading leveraged ETFs. Investors should consider shorter holding periods, stop-loss orders, or alternative instruments to mitigate potential rapid losses.
