GraniteShares 1x Short COIN Daily ETF (CONI)

Overview

The GraniteShares 1x Short COIN Daily ETF (COINX) seeks daily investment results, before fees and expenses, that correspond to the inverse (-1x) of the daily performance of Coinbase Global, Inc. (COIN). It provides a way for investors to potentially profit from a decline in the value of Coinbase shares.

Reputation and Reliability

GraniteShares is a relatively new ETF provider focusing on providing innovative and alternative investment solutions. Their reputation is growing, but track record is shorter than larger, established ETF providers.

Management Expertise

GraniteShares' management team has experience in financial markets and ETF product development.

Goal

To provide daily investment results that correspond to the inverse (-1x) of the daily performance of Coinbase Global, Inc. (COIN).

Investment Approach and Strategy

Strategy: Inverse tracking of a single stock (Coinbase). It uses derivatives such as swap agreements to achieve its inverse leverage.

Composition Primarily uses financial derivative instruments such as swaps to achieve its objective. The ETF doesn't directly hold Coinbase stock.

Market Share: Data not readily available for this specific ETF's market share in the inverse single-stock ETF category.

Total Net Assets (AUM): 33900000

Key Competitors

• SARK
• BITI

Competitive Landscape

The competitive landscape consists of inverse ETFs focusing on the cryptocurrency or technology sectors. COINX has the disadvantage of single-stock concentration risk relative to competitors that track broader indices. The benefit is laser focus on COIN which can provide higher negative correlation at times to COIN.

Historical Performance: Historical performance is highly dependent on Coinbase's stock performance and the effects of daily compounding, often leading to performance erosion over longer time periods.

Benchmark Comparison: The benchmark is the inverse daily performance of Coinbase stock (COIN).

Expense Ratio: 0.0115

Average Trading Volume

The ETF's average trading volume is moderate, which could affect the ease of trading large blocks of shares.

Bid-Ask Spread

The bid-ask spread may vary depending on market conditions and trading volume, which impacts the cost of trading.

Market Environment Factors

The ETF's performance is tied to the cryptocurrency market sentiment towards Coinbase and overall market volatility. Regulatory changes in the cryptocurrency space can also significantly impact the ETF.

Growth Trajectory

Growth trends are closely linked to Coinbase's market position and revenue growth. Changes to strategy would involve the ETF altering the leverage amount and/or target equity.

Competitive Edge

GraniteShares 1x Short COIN Daily ETF offers a targeted approach for investors seeking to profit from the short-term decline in Coinbase's stock. It provides a focused and direct way to express a bearish view on COIN. However, the single-stock focus and daily rebalancing can result in volatility and potential erosion of value over longer periods, especially in fluctuating markets. The ETF is designed for short-term tactical trading rather than long-term investment.

Volatility

The ETF is highly volatile due to its leveraged nature and single-stock focus. It is subject to daily compounding risk and may not perform as expected over longer periods.

Market Risk

The ETF faces market risk related to Coinbase's stock performance, broader cryptocurrency market fluctuations, and regulatory changes.

Ideal Investor Profile

The ETF is suitable for sophisticated investors with a high-risk tolerance who have a short-term, tactical view on Coinbase. It is not suitable for long-term investors.

Market Risk

Best suited for active traders seeking to profit from short-term movements in Coinbase stock.

The GraniteShares 1x Short COIN Daily ETF is designed for active traders seeking short-term inverse exposure to Coinbase stock. The ETF's single-stock focus, leveraged nature, and daily rebalancing create significant volatility and potential for losses. It is not suitable for long-term investors or those with a low-risk tolerance. Investors should carefully consider the risks associated with this ETF before investing. The ETF is high-risk, high-reward investment strategy that should be approached with caution.

Data Sources:

• GraniteShares Website
• ETF.com
• Bloomberg
• SEC Filings

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investors should consult with a financial advisor before making any investment decisions. Past performance is not indicative of future results. Investing in ETFs involves risk, including the possible loss of principal.