The GraniteShares 2x Long NVDA Daily ETF (NVDL) experienced a significant downturn in pre-market trading on Tuesday, plummeting 5.03%. This sharp decline comes in the wake of news that Softbank Group Corp has completely divested its stake in NVIDIA, the underlying asset of the ETF.

According to Softbank's recent financial report, the Japanese conglomerate's asset management division sold its entire NVIDIA holdings for a substantial $5.83 billion in October. This unexpected move by a major investor has sent shockwaves through the market, particularly affecting NVIDIA-related securities.

The GraniteShares 2x Long NVDA Daily ETF, which aims to provide twice the daily performance of NVIDIA stock, has been hit especially hard by this news. The ETF's leveraged nature amplifies both gains and losses, explaining the outsized reaction to Softbank's divestment. Investors are now closely watching for any further developments and potential impacts on NVIDIA's stock price, which could continue to influence the ETF's performance in the coming trading sessions.