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What is the story about?
Market participants taking leveraged positions on Silver ETFs has seen a multi-fold jump in the last 38 sessions starting December 1, disclosures from the Margin Trading Facility (MTF) book uploaded daily on the National Stock Exchange (NSE) shows.
As per the NSE disclosures, the Nippon AMC Silver ETF has the highest leveraged positions at ₹1,178 crore among its peers, as of the January 20 report.
Exchange Traded Funds (ETFs) dealing with Silver have seen a sharp sell-off on Thursday, January 22. This, is despite spot prices in the global markets not seeing a significant fall, despite risk-off sentiments ebbing overnight.
Most of the ETFs, ranging from the Nippon Silver ETF, to the Tata Silver ETF, HDFC Silver ETF, and others fell between 18% to 20% at the lows of the day, before staging a marginal recovery.
Risk-on sentiments staged a marginal recovery overnight after US President Donald Trump reiterated that he will not use force in Greenland for its acquisition, and also announced that he will not be implementing the 10% tariffs he had threatened to impose on his European allies from February 1 on the Greenland issue.
Before today's trading session, Spot Silver prices were up 30%, while the Nippon Silver ETF had risen 45%.
In a social media post on "X", Zerodha's Nithin Kamath spoke about the Margin Trading Facility (MTF), which has grown by 5x since the Covid-19 pandemic, as reported by CNBC-TV18 on multiple instances in 2025.
Kamath went on to write that the markets have decent liquidity when they go up, but it dries out in case of a drawdown adding that the next major correction could trigger synchronized liquidations of leveraged bets.
"We haven't seen a 2008, 2015, or COVID-type event since MTF scaled up. When we do, it will cause mayhem—not because any broker fails, but because forced selling into illiquid markets will cascade," Kamath wrote on X.
As per the NSE disclosures, the Nippon AMC Silver ETF has the highest leveraged positions at ₹1,178 crore among its peers, as of the January 20 report.
Exchange Traded Funds (ETFs) dealing with Silver have seen a sharp sell-off on Thursday, January 22. This, is despite spot prices in the global markets not seeing a significant fall, despite risk-off sentiments ebbing overnight.
Most of the ETFs, ranging from the Nippon Silver ETF, to the Tata Silver ETF, HDFC Silver ETF, and others fell between 18% to 20% at the lows of the day, before staging a marginal recovery.
Risk-on sentiments staged a marginal recovery overnight after US President Donald Trump reiterated that he will not use force in Greenland for its acquisition, and also announced that he will not be implementing the 10% tariffs he had threatened to impose on his European allies from February 1 on the Greenland issue.
Before today's trading session, Spot Silver prices were up 30%, while the Nippon Silver ETF had risen 45%.
In a social media post on "X", Zerodha's Nithin Kamath spoke about the Margin Trading Facility (MTF), which has grown by 5x since the Covid-19 pandemic, as reported by CNBC-TV18 on multiple instances in 2025.
Kamath went on to write that the markets have decent liquidity when they go up, but it dries out in case of a drawdown adding that the next major correction could trigger synchronized liquidations of leveraged bets.
"We haven't seen a 2008, 2015, or COVID-type event since MTF scaled up. When we do, it will cause mayhem—not because any broker fails, but because forced selling into illiquid markets will cascade," Kamath wrote on X.
