Group 1 - Rare-earth ETFs experienced a significant decline after a previous surge, highlighting the volatility associated with policy-driven trades and leverage [1][2] - The Leverage Shares 2X Long USAR Daily ETF and the Tradr 2X Long USAR Daily ETF both saw declines of around 30% following a nearly 65% increase the previous week, reflecting the risks of leveraged trading [2][3] - The recent surge in USA Rare Earth Inc. shares was driven by a federal commitment of $277 million in direct funding and a $1.3 billion loan aimed at strengthening domestic supply chains [4][5] Group 2 - The U.S. Secretary of Commerce emphasized the importance of rare earths for national security, framing the investment as a step towards U.S. mineral independence [5] - USA Rare Earth plans to begin mining operations in West Texas by 2028, targeting a production capacity of up to 40,000 tons of rare-earth materials per day [5] - Despite the initial enthusiasm, investors are reassessing expectations due to ongoing operating losses and negative cash flow, with production still a few years away [6]