VIXL.F's price is driven primarily by the VIX futures it holds.

VIX Futures Prices: Changes in VIX futures directly impact VIXL.F. As VIX futures increase, VIXL.F's value generally rises and vice-versa.

Implied Volatility Expectations: Market expectations about future volatility, as reflected in VIX futures, affect VIXL.F. Higher volatility expectations lead to higher VIXL.F prices.

Contango/Backwardation: The shape of the VIX futures curve is crucial. Contango (futures prices higher than the spot VIX) erodes VIXL.F's value due to roll yield. Backwardation (futures prices lower than the spot VIX) can positively affect VIXL.F.

Demand for Volatility Exposure: Increased investor demand for volatility protection or speculation can drive up VIXL.F's price.

Market Sentiment: Broad market sentiment and risk appetite influence VIXL.F. Risk-off sentiment often increases demand for volatility hedging, boosting VIXL.F.

Supply of VIXL.F Shares: The supply of VIXL.F shares in the market also plays a role. Large share issuances can dilute value and impact price.

Interest Rates: While a less direct factor, interest rate changes can influence the cost of holding VIX futures, indirectly affecting VIXL.F.