Who is trading Gate ETF? A comprehensive analysis of the "safe haven" for beginners and the "tactical focus" for advanced traders

In the crypto market of 2026, daily liquidation volumes exceeding hundreds of millions of dollars have become the norm. When traditional futures trading frequently triggers forced liquidations amid extreme volatility, and spot holdings struggle to amplify gains in trending markets, Gate ETF leveraged tokens stand out with their three key features: “no liquidation risk,” “spot-like monetization,” and “automatic rebalancing.” User numbers and trading volumes continue to rise.

But they are not a cure-all. In trending markets, Gate ETF acts as a “profit amplifier,” while in choppy sideways markets, it can accelerate erosion. Who exactly is suited to use them? What are the fundamental differences in logic between beginners and advanced traders using Gate ETF? This article will precisely profile these two core user groups and analyze the strategic distinctions behind their choices.

What is Gate ETF?

Before profiling users, it’s essential to clarify the product’s nature. Gate ETF is not a traditional index fund; rather, it is a trading product with built-in leverage and an automatic rebalancing mechanism. It ends with symbols like 3L (3x long) or 3S (3x short). Users can achieve leverage through spot-like operations—no margin payments or worries about forced liquidations or funding rates are necessary.

Currently, Gate supports over 244 ETF leveraged tokens, covering mainstream coins, popular narratives in the primary market, and even traditional financial assets like NVDA (Nvidia), TSLA, NAS100 (Nasdaq 100 Index), and more.

User Profiles: Beginners and Conservative Traders — “The End of the Fear of Liquidation”

Core user pain points:

The first type of typical user isn’t a gambler seeking quick riches but traders hurt by the “long and short squeeze” in futures markets, as well as conservative users who have never dared to enter leverage and only buy spot. Their characteristics include:

• “Execution Anxiety”: They see the correct direction but sell early to avoid potential liquidation.
• “Parameter Dizziness”: Facing margin, maintenance margin, funding rates, and liquidation prices on futures interfaces, they give up trading altogether.
• “Sleep Anxiety”: Holding high-leverage futures overnight, they can’t sleep well, always worried about being stopped out.

Why does Gate ETF precisely target this group?

For beginners, the core value of Gate ETF leveraged tokens isn’t “high returns” but “low entry barrier” and “psychological relief.”

1. Spot-like operation logic: Buying and selling ETH 3L (3x long ETH) is identical in interface to trading ETH spot. No need to learn complex terms like opening/closing positions or isolated vs. cross margin—just click “Buy” to establish 3x leverage.
2. Physical-level “never liquidation”: This is the safety net most valued by beginners. According to Gate’s rebalancing mechanism, the 3x leveraged product only triggers rebalancing when the real-time leverage exceeds 2.25–4.125x, effectively avoiding forced liquidation events. The maximum loss is limited to the invested principal, with no scenario of owing money to the platform.
3. Positive emotional cycle: Many beginners lose not because of poor judgment but due to panic during dips, leading to interrupted plans. Holding Gate ETF, knowing they won’t be liquidated, stabilizes their mindset and makes it easier to hold onto trends.

Example scenarios for beginners

• Case A: Bullish on ETH reaching $10,000 in 2026 but worried about a 20% short-term correction causing liquidation. Strategy: Buy ETH 3L instead of futures, withstand volatility without risking forced liquidation.
• Case B: Want to short altcoins but unfamiliar with perpetual contract funding mechanisms. Strategy: Simply search for the 3S token of that coin; sell spot-like to short.

Red line for beginners: Gate ETF is not suitable for long-term holding in sideways markets. The 0.1% daily management fee and market oscillation can erode net asset value. We recommend viewing it as a “tactical tool for trending markets,” not a “spot substitute.”

Profiles of Advanced Traders and Institutional Retail Investors — “Hunters of Capital Efficiency”

Once traders overcome the “fear of liquidation,” Gate ETF shifts from a “starter toy” to a “professional leverage component” in their toolkit.

Core needs:

• Possess a solid spot position, seeking to amplify short-term gains without disrupting long-term holdings.
• Pursue capital efficiency, avoiding locking large amounts of idle assets in margin accounts.
• Have macro perspective, engaging in relative value trades like ETH/BTC.

Three Evolutionary Forms of Gate ETF in Advanced Strategies

“Spot + ETF” Defensive and Offensive System

This is the most common combination among savvy traders.

• Defensive: Hold Bitcoin or Ethereum spot as a long-term value exposure.
• Offensive: When technicals break out (e.g., BTC stabilizes above $74,000 with volume), deploy 20–30% of total funds to buy BTC 3L tactically.
• Effect: Maintains the stability of spot holdings while capturing trend acceleration through leverage tokens for excess returns.

Replacing Perpetual Contracts to Avoid Funding Rate Erosion

Experienced users know that in one-sided markets, perpetual funding rates can reach annualized percentages of dozens of percent, severely eating into profits.

• Strategy: Gate ETF charges a fixed 0.1% daily management fee. When funding rates spike, holding a long ETF position often costs less than holding a perpetual long. For trend trades lasting days to a week, ETFs are more cost-effective.

Arbitrage of Coin Pairs and Macro Hedging

Advanced users no longer focus solely on BTC alone but pay attention to narrative strength.

• Strategy: When short-term strength favors the “AI sector” over the “Meme sector,” buy FET 3L and hedge with DOGE 3S, stripping out beta risk and focusing on alpha shifts between sectors.
• Tool advantage: No need to switch margin between different contract accounts; execute long and short positions directly within spot accounts.

“Military Rules” for Advanced Users

• Strict position management: Professional traders typically limit risk exposure per ETF position to 1–3% of total account value. For example, with $100,000 capital, maximum tolerable loss per position is $2,000. Using 5x leverage tokens, a reasonable position size is around $10,000.
• Clear awareness of holding periods: The power of Gate ETF’s compounding effect is most evident in trending markets (e.g., BTC rising 5% over three days yields over 45% return on 3L). But beyond 10–15 days, rebalancing benefits diminish. It’s a swing tool, not a long-term hold.
• Premium monitoring: Be aware of deviations between market price and NAV to avoid buying at high premiums, which can cause unnecessary costs.

Summary

By 2026, Gate has built a product matrix with hundreds of ETF underlyings.

For beginners, Gate ETF is the safest entry point into leveraged trading—using the guise of spot to wrap leverage, allowing you to understand volatility without being completely overwhelmed.

For advanced users, Gate ETF is a tactical component of portfolio management—it’s no longer an isolated trading instrument but a precise tool for enhancing capital efficiency and executing hedging strategies in conjunction with spot and futures.

Gate ETF won’t make you rich overnight, but it can increase your chances of capturing profits when you correctly identify trends. Before clicking “Buy,” ask yourself: Is the market in a clear trend or chaotic sideways movement?