The leveraged ETF market in 2026 presents a paradox: record numbers of new funds are launching even as record closures hit the sector, with over 20 leveraged and inverse ETFs shutting down in April alone. Direxion notably closed 10 ETFs on April 10, including LMBO, a bullish fund that had gained approximately 34% but was terminated solely due to insufficient assets under management. Surviving products tracking MicroStrategy and Coinbase demonstrate that distribution, brand awareness of the underlying asset, and trading volume matter more than raw returns to ensure a fund’s longevity.
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