Summary The Defiance Daily Target 2X Long IREN ETF offers 2x daily exposure to IREN Limited and is best suited for short-term trading. IRE stands out for its exceptional liquidity, with $270mm in net assets and a $120.46mm average daily trading volume, supporting efficient execution. IREN is a high-growth, profitable data center operator with major expansion plans and trades at an attractive 23.15x GAAP P/E. I recommend a Buy rating on IRE for daily exposure only, emphasizing strict risk management due to compounding and NAV erosion risks. The Defiance Daily Target 2X Long IREN ETF ( IRE ) is a leveraged exchange-traded fund designed to provide investors with 2x the daily performance of IREN Limited ( IREN ). IRE has a highly liquid market with an average of $120.46mm in share value changing hands on a daily basis, making IRE an appealing investment vehicle for those seeking to amplify their daily exposure to IREN shares. Given the risks associated with trading leveraged strategies, investors should only consider IRE for daily exposure, as the ETF may not be appropriate as a long-term holding; risks associated with leveraged strategies include compounded returns, NAV erosion, and potential losses that may be unrecoverable. About Defiance Daily Target 2X Long IREN ETF Defiance ETFs launched IRE on October 20, 2025, on the NYSE Exchange. IRE has a relatively high expense ratio of 131 bps, modestly higher than peer single-name leveraged stock strategies provided by peers like Direxion Funds, GraniteShares, and Rex Shares, though on par with the Tradr 2x Long IREN Daily ETF ( IREX ). Seeking Alpha I believe the most critical factor to consider when evaluating a leveraged strategy is liquidity. Comparing IRE to peer leveraged IREN ETFs, IRE presents the most liquid market with $270mm in net assets and a 3-month average trading volume of $120.46mm in share value. High liquidity is crucial for actively trading a strategy for a variety of reasons, including asset pricing and cost management as it relates to the bid/ask spread. Accordingly, IRE has an average bid/ask spread of 18 bps, which may add to trading costs for investors. Seeking Alpha IRE utilizes swap derivatives in order to gain 200% exposure to IREN shares. Swap contracts have certain intricacies that may impact the pricing and returns of the ETF, features that should be considered when making an investment decision. Swap contracts are agreements between two parties to exchange daily performance for a fixed rate, settled at the end of each trading day. As a result of the daily settlement, performance is reset on the following trading day, which is reflected in the performance of the ETF. This means that the performance of the ETF will not roll forward and will reset the following day, compounding returns over an extended holding period. This may result in returns beyond the indicated 2x daily performance target, whether to the upside or downside. If misappropriately used, the compounding effect can significantly impact one’s position and may result in compounded losses that may be unsalvageable. In addition to this, leveraged funds may experience NAV erosion, or value decay over time, which may impact performance over a long holding period. For these reasons, investors should only consider trading IRE for daily exposure. IREN Limited is an Australia-based data center and electrical infrastructure operator that’s in the business of mining bitcoin. The company is currently in the process of constructing four 50MW liquid-cooled data centers with the intent of hosting Microsoft ( MSFT ) as part of its 750MW Childress campus. In addition to this, IREN has 2 GW of data center capacity in development at its Sweetwater site, of which 1.4 GW is scheduled for April 2026 and 600 MW for late 2027. A big appeal of IREN is that the firm has reported positive net earnings in recent quarters. Looking at consensus forecasts, IREN is expected to more than double its revenue from eFY26 to eFY27, presenting a high-growth opportunity for investors. Despite being in a strong financial position, concerns about an AI bubble have been growing in recent months as capital investments for AI compute capacity are expected to outweigh returns on investment. Though I don’t agree with the AI bubble theme, investor uncertainty may create short-term trading opportunities in which investors trade on both good and bad news, whether it’s directly involved in domestic AI development or the development of models in China like DeepSeek. From a tactical perspective, IREN is currently exhibiting positive pricing action, though it is trading far above its 50-, 100-, and 200-day simple moving averages and may be turning towards a small sell-off to balance out trading strength. Fundamentally , IREN shares are trading at 23.15x GAAP price/earnings, presenting an appealing valuation for a high-growth company. At a high level, these features may present investors with an appealing opportunity to trade IRE if IREN shares exhibit positive pricing pressure over time. TradingView TradingView Additional Risks Related to IRE Leveraged strategies were designed for daily exposure; holding IRE beyond a single trading day may present investors with certain risks that should be considered in order to protect one’s position. Holding leveraged strategies beyond a single trading day may result in a compounding effect on shares held that may result in returns beyond the indicated 2x performance target, working both to the upside and downside. Long-term exposure to IRE may result in value decay that may impact one’s initial investment. Leveraged strategies may expose investors to greater volatility risk when compared to the underlying shares. Given the risks involved in trading leveraged strategies, I believe traders should adhere to strict risk management protocols, maintaining their trading parameters in order to protect themselves from significant losses. Given that IRE was designed for daily exposure, traders may be exposed to greater short-term capital gains in addition to the expense ratio for holding the shares. You can review additional risks here and the SEC bulletin here . Final Thoughts IRE can be an appealing leveraged ETF for those seeking to amplify their daily exposure to IREN shares, particularly given the high level of liquidity in the market. The market has a long-term positive outlook for IREN shares, potentially presenting investors with an appealing strategy to trade to the upside. Given the risks associated with holding leveraged strategies, investors should only consider IRE for daily exposure; I am recommending IRE with a Buy rating for daily exposure.