Leverage Shares Introduces New Single-Stock Leveraged ETFs for Figma and Futu
Launch of New Leveraged Single-Stock ETFs
Leverage Shares by Themes has announced the introduction of two new single-stock leveraged Exchange Traded Funds (ETFs), FIGG and FUTG, which became available for trading on October 14, 2025. These new financial products are designed to provide investors with 200% (2x) leveraged exposure to the daily performance of their underlying stocks, Figma (FIG) and Futu (FUTU), respectively. The objective is to enable both sophisticated traders and retail investors to amplify returns and dynamically participate in the performance of these specific companies. The ETFs feature an industry-low management fee of 0.75% for single-stock leveraged products.
Detailed Mechanics and Underlying Companies
FIGG, the Leverage Shares 2X Long FIG Daily ETF, and FUTG, the Leverage Shares 2X Long FUTU Daily ETF, are actively managed funds. They aim to achieve twice the daily performance of their respective underlying stocks, net of fees and expenses. To accomplish this, the funds invest a minimum of 80% of their net assets in financial instruments such as swap agreements and options. For instance, FIGG's portfolio includes swap agreements with Clearstreet and Marex, alongside cash and treasury obligations, while FUTG utilizes similar arrangements with Clearstreet, Marex, and Cantor. Both ETFs are listed on NASDAQ. As of October 16, 2025, FUTG reported total assets of $352.2k and a Net Asset Value (NAV) of $14.09, with FIGG holding $297.6k in total assets and an NAV of $11.91.
The underlying companies represent distinct but innovative segments of the digital economy. Figma, a software company, has garnered attention for its real-time, browser-based tools that are revolutionizing collaborative design and product development. The company recently underwent a "red-hot" Initial Public Offering (IPO) on August 1, 2025, with its stock debuting at $33 per share and closing its first day of trading at $115.50, a 255% increase, valuing the company at $59 billion. Futu Holdings, conversely, operates within the financial sector, primarily reshaping China's online brokerage and wealth-management market through its technology-driven platforms.
Market Reaction and Investor Considerations
The introduction of these highly specific leveraged ETFs reflects a continued investor appetite for targeted, potentially high-reward investment vehicles, particularly within the technology sector and innovative growth companies. These products are explicitly positioned for active traders and sophisticated investors aiming to capitalize on short-term market movements and the volatility often associated with high-growth tech stocks, especially following significant events like an IPO.
Paul Marino, Chief Revenue Officer at Themes ETFs, emphasized the strategic rationale:
> "We continue to expand our single stock leveraged offerings in names investors want to trade. Both FIG and FUTU are expanding their footprints globally, and now investors can access a leveraged return through our ETFs."
However, the inherent structure of leveraged ETFs necessitates careful consideration of risk. These funds are not suitable for all investors and are designed for those with a clear understanding of the potential consequences of daily leveraged results and who are prepared to monitor their portfolios frequently. Due to daily rebalancing and compounding effects, the returns for periods longer than a single day will likely deviate significantly from 200% of the underlying stock's performance. Critically, investors face the risk of losing their entire principal if the underlying stock experiences a decline of more than 50% in a single trading day. This underscores a market segment willing to undertake substantial risk for potentially amplified short-term gains, particularly in volatile market conditions.
Broader Regulatory Context and Market Implications
The launch of these 2x leveraged single-stock ETFs occurs within a broader regulatory environment that is increasingly scrutinizing such complex financial products. The U.S. Securities and Exchange Commission (SEC) currently faces a wave of ETF filings seeking even higher leverage, with some proposals targeting 3x and 5x exposure to underlying assets. While the SEC's Rule 18f-4 caps leverage at twice the underlying asset's daily return, there remains an ongoing debate regarding the compliance and broader market stability implications of these products. Analysts have warned that excessive leverage can amplify market swings and strain liquidity. Historical data indicates that over half of leveraged ETFs launched three years prior have since closed, with many incurring significant losses, some exceeding 90% in value. This history reinforces concerns about their sustainability and long-term investor outcomes, highlighting the potential for significant investor detriment in these highly speculative instruments.
The market has not yet provided analyst estimates, Price-to-Earnings (P/E) ratios, or Price-to-Book (P/B) ratios for the underlying stocks or the ETFs, which would typically offer a valuation context.
Outlook
The introduction of FIGG and FUTG marks an expansion in the range of highly specialized investment tools available to investors, particularly those seeking magnified exposure to individual innovative companies. While these ETFs offer the potential for amplified short-term gains, they simultaneously introduce a heightened degree of risk and volatility. Market participants will be closely observing the performance of these new funds and their impact on the trading patterns of Figma and Futu. Furthermore, the continued proliferation of leveraged products is likely to maintain pressure on regulatory bodies, such as the SEC, to clarify and potentially reinforce guidelines to balance financial innovation with investor protection and market stability. Investors considering these products are advised to conduct thorough due diligence and understand the amplified risks inherent in daily leveraged instruments.
