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wrote a post · May 3 21:06

Market attention on the Circle ecosystem

Recently, Bitcoin's performance has once again become a market focus. Entering April 2026, the price of Bitcoin rebounded after experiencing two consecutive months of pullback, with a cumulative increase of over 13% for the month, briefly reclaiming the $79,000 level and reaching a 12-week high. Behind this rally, the market has generally noticed a concurrent rise in trading activity related to Circle-linked assets — particularly, the trading activity associated with a 'Circle Two-times Leveraged ETF' product, which is showing a noticeable and continuous growth trend. Data shows that in the first quarter of 2026, the trading volume of this product further expanded, doubling quarter-over-quarter. The overlap in timing between the two trends reflects that when Bitcoin’s price experiences directional changes, investors' willingness to engage with leveraged products within the Circle ecosystem also increases.
Recently, Bitcoin's performance has once again become a market focus. Entering April 2026, the price of Bitcoin rebounded after experiencing two consecutive months of pullback, with a cumulative increase of over 13% for the month, briefly reclaiming the $79,000 level and reaching a 12-week high. Behind this rally, the market has generally noticed a concurrent rise in trading activity related to Circle-linked assets — particularly, the trading activity associated with a 'Circle Two-times Leveraged ETF' product, which is showing a noticeable and continuous growth trend. Data shows that in the first quarter of 2026, the trading volume of this product further expanded, doubling quarter-over-quarter. The overlap in timing between the two trends reflects that when Bitcoin’s price experiences directional changes, investors' willingness to engage with leveraged products within the Circle ecosystem also increases. This series of increases reflects, to a certain extent, the heightenedattentionfrom market participants toward Circle-related assets. Meanwhile, inflows into leveraged ETF products can also be interpreted as changes in investors' expectations of short-term volatility in the underlying assets, as well as rising demand for leverage tools as a means to express market views or manage risk.It is important to note that rapid expansion in trading volumes does not necessarily equate to unilateral buying sentiment; it may also include diverse strategic components such as hedging, short-term trading, and arbitrage. Overall, changes in the product's data can be consideredone of the objective indicators of market attention on the Circle ecosystem, also indirectly...
This series of increases reflects, to a certain extent, the heightenedattentionfrom market participants toward Circle-related assets. Meanwhile, inflows into leveraged ETF products can also be interpreted as changes in investors' expectations of short-term volatility in the underlying assets, as well as rising demand for leverage tools as a means to express market views or manage risk.It is important to note that rapid expansion in trading volumes does not necessarily equate to unilateral buying sentiment; it may also include diverse strategic components such as hedging, short-term trading, and arbitrage.

Overall, changes in the product's data can be consideredone of the objective indicators of market attention on the Circle ecosystem, also indirectly reflecting investors' actual reactions to the interaction between high-volatility assets and leverage tools within a specific time period. Observers should comprehensively consider the overall market environment, regulatory trends, and changes in the fundamentals of the underlying assets to form a more comprehensive understanding of this trend.
Risk Warning:
In recent years,Leveraged ETFs with two times leverage are increasingly attracting investors' attention.These financial products, through the use of derivatives, aim to track twice the daily performance of the underlying asset, offering investors a tool to amplify potential returns in volatile markets while hedging or enhancing position efficiency. Particularly during periods of heightened volatility with clear short-term trends, they allow investors to pursue leveraged investment effects without engaging in margin trading.
However, it must be noted objectively that leverage is a double-edged sword. While it amplifies potential gains, it equally magnifies potential losses. Additionally, since these products are designed to track 'daily' performance, holding them over extended periods may result in deviations from the cumulative two-times return of the underlying asset due to compounding effects in volatile markets. Therefore, such products are better suited for experienced investors who can closely monitor the market, possess high risk tolerance, and have a deep understanding of their operational mechanisms.
Recently, Bitcoin's performance has once again become a market focus. Entering April 2026, the price of Bitcoin rebounded after experiencing two consecutive months of pullback, with a cumulative increase of over 13% for the month, briefly reclaiming the $79,000 level and reaching a 12-week high. Behind this rally, the market has generally noticed a concurrent rise in trading activity related to Circle-linked assets — particularly, the trading activity associated with a 'Circle Two-times Leveraged ETF' product, which is showing a noticeable and continuous growth trend. Data shows that in the first quarter of 2026, the trading volume of this product further expanded, doubling quarter-over-quarter. The overlap in timing between the two trends reflects that when Bitcoin’s price experiences directional changes, investors' willingness to engage with leveraged products within the Circle ecosystem also increases. This series of increases reflects, to a certain extent, the heightenedattentionfrom market participants toward Circle-related assets. Meanwhile, inflows into leveraged ETF products can also be interpreted as changes in investors' expectations of short-term volatility in the underlying assets, as well as rising demand for leverage tools as a means to express market views or manage risk.It is important to note that rapid expansion in trading volumes does not necessarily equate to unilateral buying sentiment; it may also include diverse strategic components such as hedging, short-term trading, and arbitrage. Overall, changes in the product's data can be consideredone of the objective indicators of market attention on the Circle ecosystem, also indirectly...
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Disclaimer: The content is purely personal sharing and does not constitute any offer, solicitation, recommendation, opinion, or guarantee regarding securities, financial products, or tools. Investment involves risks, and maximum losses may exceed your investment principal. Investors should consider whether such investments are suitable for their financial situation. All investment decisions and their consequences are solely the responsibility of the investor, and consulting a professional investment advisor is recommended. I do not guarantee the accuracy or completeness of the referenced information; please verify it yourself. I am not responsible for any errors, omissions, or losses caused by reliance on this data.
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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