Quantum computing firm D-Wave Quantum Inc. (NYSE: QBTS) has broken through the 50% threshold—meaning that shares have lost more than half of their value year-to-date (YTD) in 2026—leaving investors wondering just how much farther down the bottom may be. Indeed, the last time QBTS stock traded below $14 per share was in May 2025, after which shares surged to more than triple that by October.
For all of the reasons investors may be concerned about the company's selloff, a lower share price for D-Wave may have one potential advantage. However, any future gains would mean a larger percentage increase compared to gains of the same absolute value at a higher share price.
Put differently, if QBTS is trading at $14 and increases by $1, it constitutes a larger percentage gain than if it is trading at $30 and increases by that same $1. This may be where the Tradr 2X Long QBTS Daily ETF (BATS: QBTX) comes into play.
What QBTX Offers and Why Its Appeal Is Different From QBTS
QBTX is one of a growing number of single-stock exchange-traded funds (ETFs) aiming to provide leveraged exposure to a sole underlying stock. Most ETFs hold a diversified basket of stocks, but single-stock funds like QBTX take the opposite approach, sacrificing diversification to magnify the daily returns of one name.
In the case of QBTX, the fund's goal is to provide 2X long exposure to the daily return of D-Wave. If D-Wave stock increases by 5% in a single day, QBTX is structured to attempt to increase by 10%. On the other hand, on days in which D-Wave may decline, QBTX will also double those dips.
For this reason, investors should see D-Wave and QBTX as two very different investment plays, despite their seeming similarities. QBTS may appeal to quantum computing bulls seeking to firm up a position in the industry as it continues to expand toward profitability, which may mean holding shares of D-Wave for years until (or if) the company significantly increases its revenue and eliminates losses. QBTX is more of a strategic play for highly active investors seeking to benefit from ultra-short-term wins (say, on days in which D-Wave surges thanks to a strong earnings report or something similar).
It Comes Down to Risk Tolerance and Time Horizon
There's no doubt that D-Wave is facing near-term pressures, likely the result of earnings misses for Q4 2025 and the widespread assumption that revenue in the quarters to come could continue to be lumpy as the company plans for higher-than-usual spending to expand its reach. This is on top of the industry's already speculative nature.
Still, analysts across Wall Street remain largely optimistic about D-Wave's prospects in the longer term, and the consensus price target remains above $36 per share. This may mean that D-Wave appeals to investors with at least a moderate amount of risk tolerance and a medium-to-long time horizon for their investment.
QBTX's daily 2X leverage on an already-speculative stock makes it suitable for only sophisticated investors with a much higher tolerance for risk. The fact that leverage resets each trading day means that it is also only appropriate for very short-term plays, lest an investor end up facing compounding decay as QBTX deviates from the performance of QBTS over longer periods.
So, when is QBTX a good play for QBTS bulls? It may be most specifically useful when investors are confident in a short-term directional trade thanks to a particular catalyst—the announcement of a new Advantage2 quantum system sale, for example, or a major government contract. It could also amplify an existing D-Wave position when the company is again seeing sustained upward momentum. In all cases, a QBTX bet should be closed before the market in order to avoid compounding risk.
On the other hand, investors more broadly convinced of the transformative nature of quantum computing may even opt for a different ETF, with a growing number of quantum-focused ETFs offering greater diversification and no leverage risk now available for those not willing to put all their hopes in a single stock.
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The article "D-Wave Quantum Has Been Cut in Half—Can a Leveraged ETF Help Bulls?" first appeared on MarketBeat.
