How does the underlying asset prices change if the volume of leveraged ETF for them increase?

Abstract

Leveraged ETFs and inverse ETFs have attracted significant funds lately. They provide leveraged long(buying) or short(selling) exposure to the daily return of underlying assets such as stock price indices(e.g. the Nikkei Index). Some say that Leveraged ETFs and their rebalancing trades may cause both the spike in volatility and the appearance of large price swings at the end of the trading day.
In this paper, we check how the underlying asset prices change if the volume of leveraged ETF for them increase, using an artificial market.