GraniteShares 1x Short COIN Daily ETF (CONI)

Overview

The GraniteShares 1x Short COIN Daily ETF (COIN) is designed to deliver the inverse (-1x) of the daily performance of Coinbase stock. It offers investors a way to potentially profit from a decline in the price of Coinbase shares. The ETF primarily focuses on providing a short exposure to a single stock. It uses financial instruments to achieve its daily inverse return target.

Reputation and Reliability

GraniteShares is a known ETF provider, but the reliability of leveraged/inverse ETFs depends on precise daily tracking, which can deviate due to compounding effects.

Management Expertise

GraniteShares has expertise in managing leveraged and inverse ETFs, but the complexity of these products requires constant monitoring and adjustment.

Goal

The primary goal of COIN is to provide daily investment results that correspond to the inverse (-1x) of the daily performance of Coinbase (COIN) stock.

Investment Approach and Strategy

Strategy: COIN aims to deliver the inverse of the daily return of Coinbase shares through the use of swap agreements and other derivative instruments.

Composition The ETF holds a mix of swap agreements and money market instruments to achieve its investment objective. It doesn't directly hold Coinbase shares.

Market Share: COIN's market share is relatively small, as it is a niche product focused on a single stock's inverse performance.

Total Net Assets (AUM): 20950000

Key Competitors

• BITI
• SARK

Competitive Landscape

The competitive landscape is defined by other inverse ETFs, particularly those targeting the cryptocurrency and technology sectors. COIN's advantage lies in its direct focus on Coinbase, while its disadvantage is its concentration risk. Competitors may offer broader sector exposure.

Historical Performance: The historical performance of COIN is inversely correlated to the performance of Coinbase. Performance is highly volatile and path-dependent due to the nature of leveraged/inverse ETFs.

Benchmark Comparison: COIN's performance is benchmarked against the inverse of Coinbase's daily performance. Tracking error can occur due to fees and operational costs.

Expense Ratio: 1.15

Average Trading Volume

COIN's average trading volume can vary but is generally moderate, which can impact the ease of entering and exiting positions.

Bid-Ask Spread

The bid-ask spread for COIN can fluctuate, reflecting the underlying volatility of Coinbase and affecting trading costs.

Market Environment Factors

COIN's performance is influenced by factors affecting Coinbase, including cryptocurrency market sentiment, regulatory developments, and company-specific news.

Growth Trajectory

COIN's growth depends on investor demand for short exposure to Coinbase and the overall volatility of the cryptocurrency market. Changes to strategy and holdings are infrequent, primarily focusing on maintaining the -1x daily exposure.

Competitive Edge

COIN's competitive edge lies in its direct and focused inverse exposure to Coinbase. It allows investors to specifically target a short position in that single stock. Unlike broader cryptocurrency or technology ETFs, it offers a pure-play approach. However, this advantage comes with increased concentration risk and is best suited for sophisticated traders with a clear understanding of the ETF's mechanics.

Volatility

COIN is highly volatile due to its leveraged/inverse nature and the inherent volatility of Coinbase. Investors should be prepared for significant daily fluctuations.

Market Risk

The primary market risk is the potential for large losses if Coinbase's stock price increases. The ETF is designed to decline in value as Coinbase rises.

Ideal Investor Profile

The ideal investor for COIN is a sophisticated trader with a short-term outlook who is seeking to profit from a decline in Coinbase's stock price. This ETF is not suitable for long-term investors.

Market Risk

COIN is best suited for active traders who understand the risks of leveraged and inverse ETFs. It is not appropriate for passive index followers or long-term investors.

GraniteShares 1x Short COIN Daily ETF (COIN) provides an inverse (-1x) daily return of Coinbase stock. It is a niche product designed for sophisticated traders seeking short-term profit opportunities. The ETF is subject to high volatility and concentration risk. It's not suitable for long-term investment strategies or those seeking passive exposure, and its performance is inversely correlated to Coinbase's, declining as the stock rises.

Data Sources:

• GraniteShares official website
• ETF.com
• YCharts

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should consult with a financial advisor before making any investment decisions.