March 7 Reuters Investors have piled into Nvidiafocused exchangetraded funds ETFs this year on the frenzy around AI, with inflows into a bullish fund that tracks the shares of the chip designer hitting an alltime high on Wednesday.

Net daily inflows into the GraniteShares 2x Long NVDA Daily ETF hit a record of 197 million, according to LSEG Lipper data. The assets managed by the ETF have grown to 1.41 billion from 213.75 million at the start of the year.

WHY IT39;S IMPORTANT

Riskaverse investors have largely stayed away from leveraged ETFs tracking single stocks that aim to provide returns over extremely short periods.

These ETFs, which made their U.S. debut in 2022, have become popular among speculators looking to bet on the most volatile shares based on earnings and other news.

CONTEXT

Nvidia, which controls about 80 of the highend AI chip market, has surged nearly 82 since the start of the year after a stellar forecast and amid renewed euphoria around AI.

Leveraged singlestock ETFs seek to amplify the returns of an underlying stock for a single day, generally by two or three times, using financial derivatives and debt as leverage.

KEY QUOTES

Nvidia has been the hottest stock in 2024 and many investors are eager to seek out higher returns in exchange for added risk, said Todd Rosenbluth, chief ETF strategist at VettaFi.

We expect to see continued demand for single stock leveraged ETFs as a new wave of mustown companies emerge.

THE NUMBERS

Net monthly…