Xanadu Quantum Technologies Ltd (XNDU) saw its stock price soar 12.91% during intraday trading on Tuesday, marking a significant upward movement for the quantum technology firm.

The surge appears driven by a combination of positive company developments. Xanadu recently announced a technical breakthrough in its Quantum Read-Only Memory (QROM) algorithm, which has boosted market confidence in its photonic quantum technology roadmap. Furthermore, the company reported that its first-quarter revenue grew fourfold year-over-year, significantly exceeding market expectations and supporting bullish investor sentiment.

Market analysts note that price volatility for Xanadu has been amplified by the recent introduction of a new financial instrument. Tradr ETFs launched a 2x leveraged long ETF (XNDX) targeting the stock earlier this month, which is designed to deliver 200% of the stock's daily performance. The combination of fundamental catalysts and this leveraged trading product has introduced additional capital flows, contributing to the amplified price movements.