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On Friday, Defiance ETFs launched ORCX, the first 2X long ETF for tech giant Oracle Corporation. The leveraged ETF seeks to provide 200% long daily targeted exposure to Oracle.
Oracle Corporation (NYSE:ORCL) has been in the news recently related to President Trump’s massive $500 billion Stargate AI initiative. The project was announced in January with initial equity funders SoftBank (TYO:9984), OpenAI, Oracle, and MGX. It seeks to build new AI infrastructure for OpenAI in the United States and will start with $100 billion immediately. Oracle, NVIDIA (NASDAQ:NVDA), and OpenAI will closely collaborate to build and operate this computing system for the Stargate project.
Investing.com talked with Defiance ETF CEO Sylvia Jablonski today about the new ORCX ETF launch.
Can you tell us about the Oracle 2X long product and why you made it?
Jablonski: Oracle has demonstrated significant growth in its cloud services, with Oracle Cloud Infrastructure revenue increasing by 52% year-over-year to $2.4 billion, driven by strong demand for AI capabilities. However, the company faces stiff competition from industry giants like Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) in the cloud and AI sectors. Despite these challenges, Oracle’s strategic partnerships and investments in AI position it as a formidable competitor. They are a beneficiary of stargate a potential 500b investment set to change the future of ai and infrastructure. Their AI and cloud services are prominent leaders. Investors love the stock, and it offers a nice dividend. As quantum computing evolves, Oracle may leverage its existing technologies to integrate quantum solutions into its offerings.
What type of investors are you looking to attract with the ORCX ETF?
Jablonski: The product is a daily 2x ETF that tracks Oracle. It allows investors to amplify their exposure to the stock. Investors should understand that these are short term tactical trading tools, and visit our website to learn more about the risks and suitability of leveraged funds.
We are looking to attract investors who are comfortable with the risk and benefits of trading leveraged funds, understand leveraged funds and have a high short term view on Oracle and wish to express that with a find that amplifies exposure.
Do you plan on making a 2x short ORCL product in the future?
Jablonski: We have plans to launch many long and short single name leveraged funds. If investors tell us their is a demand for a particular fund we are certainly willing to consider a future launch.