---
title: "CBRG is strapping explosives onto CBRS"
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/40984706.md"
description: "Have you guys heard of $CBRS 2X Long ETF(CBRG.US)? Most likely not, because it has a total float of less than 600k shares, and its trading volume on 5/20 was only $4.2 million. But its underlying asset CBRS has been a frequent headline in the past two weeks—it just IPOed on 5/14, was hailed by analysts as the "Next Nvidia," and Cathie Wood bought 100k shares in a single day on 5/20..."
datetime: "2026-05-21T10:35:11.000Z"
locales:
  - [en](https://longbridge.com/en/topics/40984706.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/40984706.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/40984706.md)
author: "[沪上老徐](https://longbridge.com/en/profiles/26419342.md)"
---

# CBRG is strapping explosives onto CBRS

Have you guys heard of $CBRS 2X Long ETF(CBRG.US) this stock? Most likely not, because it has less than 600,000 shares in total float, with a trading volume of only $4.2 million on 5/20. However, its underlying asset, CBRS, has been a frequent headline in the past two weeks—it just IPOed on 5/14, was dubbed the "Next Nvidia" by analysts, Cathie Wood bought 100,000 shares on 5/20, and it was approved by S&P Fast Track on 5/19 for potential index inclusion. A super-hot new stock, paired with an extremely small 2X leveraged ETF—I think this is worth talking about specifically.

First, let's explain what $Cerebras(CBRS.US) is.

Cerebras Systems makes **wafer-scale AI chips** (Wafer-Scale Engine). Simply put, it turns an entire silicon wafer into a single chip. A regular NVIDIA GPU is cut from a small piece of the wafer and then packaged, while Cerebras doesn't cut it—it packages the entire wafer as a single chip, with an area 56 times larger than the NVDA H100 and 4 trillion transistors vs. NVDA's 80 billion. Its selling point is "AI inference speed 50-70 times faster than NVIDIA," and the market defines it as a "potential challenger to NVDA."

It IPOed on 5/14 at $350, closed at $311 on the first day (**down 11%**), and fell another 10% to $279.72 on the second day. It looked like a typical new stock breaking below its issue price—but it suddenly reversed on 5/19 because S&P listed it in the Fast Track channel (meaning it will be included in the index within weeks, forcing passive funds to buy). On 5/20, it was volatile again: pre-market was up 3.81%, early trading surged +10% to $338, but Jensen Huang commented that "chips like Groq will remain niche products long-term"—Groq and Cerebras are both new players in AI inference chips, and Huang's words indirectly hit all these newcomers. As a result, CBRS fell from a high of $338 to a low of $284, closing at $290.69, down 4.26%.

**In just one day, CBRS itself experienced a 19% intraday swing.** This is the "standard move" for a new IPO—the first 30 days see the most intense investor gamesmanship, with extremely high volatility.

What is $CBRS 2X Long ETF(CBRG.US) ? Its full name is **Leverage Shares 2X Long CBRS Daily ETF**, a 2X daily leveraged ETF for CBRS. It rebalances its holdings after each market close to maintain 2X leverage.

So how did CBRG perform on 5/20? Intraday high $17.15, low $12.40, closed at $12.78, down 8.52%—**a single-day swing of 38%**. CBRS itself swung 19%, and CBRG amplified it to 38% due to 2X leverage. If you bought at the high of $17.15 at 4 AM ET (9:30 AM Beijing time, US market open) and closed at $12.78 at 4 PM ET, your account would be down 25%.

Why do I say "strapping a bomb to CBRS"?

First, **CBRS itself is a bomb**. The first 30 days after a new IPO, plus ARK's successive hype, plus S&P index inclusion expectations, plus NVDA's Jensen Huang's bearish comments—bull and bear forces are extremely divided. For such a stock, daily ±10-20% swings are the norm, not the exception.

Second, **leveraged ETFs on highly volatile assets** amplify not just gains and losses but also path-dependent decay. As I explained in the LRCX/LRCU post a few days ago—if LRCX rises 10% one day and falls 10% the next, it's down 1% cumulatively, while the corresponding 2X leveraged ETF is down 4%. For a stock like CBRS with three times the volatility, the decay is also three times greater.

Third, **CBRG has extremely low float**. The total shares outstanding are listed as 0, but there is some actual float, with a single-day trading volume of only $4.21 million—any slightly larger order will send the price flying, with bid-ask spreads so wide it's unbelievable. Institutions won't touch this kind of stock; it's all retail traders.

So, what should I do if I want to bet on Cerebras? Old Xu's three trading tips:

First, **don't use leveraged ETFs for the first 30 days after a new IPO**. Volatility is too high; leverage and decay will eat into your directional gains. If you want to go long, buy CBRS shares directly, keeping the position under 1% of your total portfolio as an "AI computing power lottery ticket."

Second, **if you really want to use CBRG, only do intraday trades**. Buy in the morning, sell in the afternoon, absolutely no overnight holds. CBRS has the potential for a Gamma squeeze due to S&P inclusion expectations and ARK's continuous buying, so there's logic for intraday longs—but overnight decay will wipe out any directional gains.

Third, **wait until the first 30 days after the IPO are over**. Cerebras IPOed on 5/14; after 6/14, volatility usually converges to a 5-8% range. Only then does using 2X leverage make sense. Using it now = riding in a race car without a seatbelt.

Cerebras as a company has potential (wafer-scale AI inference chips are real technology), but whether to participate in this post-IPO hype wave depends on how strong your heart is. If you must participate, **buy CBRS shares, don't touch CBRG**—an extra +50% in leveraged gains isn't worth the cost of a few skipped heartbeats.

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- [CBRS.US](https://longbridge.com/en/quote/CBRS.US.md)
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- [CVAC.US](https://longbridge.com/en/quote/CVAC.US.md)
- [CBRG.US](https://longbridge.com/en/quote/CBRG.US.md)
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## Comments (2)

- **Ananonymous · 2026-05-21T13:44:04.000Z · 👍 3**: Never mind, just buy in.
- **周杰伦小迷弟 · 2026-05-21T10:42:14.000Z · 👍 1**: Learn