Posted on: February 24, 2026, 01:14h.
Last updated on: February 24, 2026, 01:14h.
- The leveraged ETF unexpectedly failed to attract investors
- It only has $492,800 in total assets
- Closure is set for March
One of the pioneering leveraged exchange-traded funds (ETFs) focused solely on DraftKings (NASDAQ: DKNG) is headed for termination.
In a statement issued on Monday, Tuttle Capital Management, the firm managing the REX Shares lineup of ETFs, announced the impending closure of the T-REX 2X Long DKNG Daily Target ETF (CBOE: DKUP) in the upcoming month. Launched on July 31, 2025, this fund was intended to replicate 200% of DraftKings’ daily price fluctuations. In addition, Tuttle will also terminate the T-Rex 2X Long BULL Daily Target ETF (CBOE: BULU).
The Funds will stop trading on the Cboe BZX Exchange, Inc and will be unavailable for purchases by investors as of the close of business on March 16, 2026,” the announcement stated. “The Funds will not be accepting purchase orders after this date. Shareholders can sell their holdings through the Closing Date; standard brokerage fees may apply. However, we cannot guarantee a market for the Fund shares post-Closing Date. Liquidation of the Funds is set for March 23, 2026.”
Webull (NASDAQ: BULL), linked to the BULU ETF, is a brokerage firm rather than a gaming enterprise, yet it has gained popularity among retail investors and has connections to the prediction markets sector through its partnership with Kalshi.
Was DKUP’s Failure Unexpected?
One could argue that the demise of DKUP is surprising, especially since DraftKings boasts a significant retail investor following, a demographic that typically favors leveraged ETFs.
Conversely, many of these traders tend to hold onto leveraged ETFs for extended periods, which can expose them to substantial losses in cases where the underlying stock declines.
That has certainly been a challenge for DraftKings, whose shares have plummeted 52.53% over the last six months, greatly affecting DKUP as it has lost 79.42% of its value since its launch.
Lack of Demand for DraftKings ETFs
In recent times, single-stock ETFs have surged in popularity, driven in part by active retail traders who are also sports betting enthusiasts or participants in prediction markets. A number of single-stock ETFs have surpassed $1 billion in managed assets, with an additional one nearing that milestone.
However, this trend hasn’t translated into success for DraftKings-related ETFs, and DKUP’s closure is a testament to that.
Moreover, the Defiance Daily Target 2X Long DKNG ETF (NASDAQ: DKNX), which is DKUP’s closest competitor, currently possesses only $3.95 million in managed assets. Like DKUP, this Defiance ETF is approximately seven months old.