GraniteShares ETF Trust - GraniteShares 1.5x Long COIN Daily ETF (CONL)

Overview

The GraniteShares 1.5x Long COIN Daily ETF (COINL) seeks daily investment results, before fees and expenses, that correspond to 1.5 times (150%) the daily percentage change of the common stock of Coinbase Global, Inc.

Reputation and Reliability

GraniteShares is a relatively newer ETF provider, specializing in leveraged and inverse products. Its reputation is tied to the performance and risk management of these specialized ETFs.

Management Expertise

GraniteShares' management team has experience in structuring and managing leveraged and inverse ETFs. Their expertise is crucial for handling the complexities of daily rebalancing and derivative instruments.

Goal

To seek daily investment results, before fees and expenses, that correspond to 1.5 times (150%) the daily percentage change of the common stock of Coinbase Global, Inc.

Investment Approach and Strategy

Strategy: The ETF employs a leveraged strategy, using financial instruments such as swap agreements to amplify the daily returns of Coinbase's stock (COIN).

Composition The ETF primarily holds financial instruments (swap agreements) designed to provide leveraged exposure to Coinbase stock, alongside a small allocation in cash or similar liquid assets to manage its daily rebalancing.

Market Share: COINL's market share within the leveraged single-stock ETF space is moderate, reflecting the specialized nature of the product and the competition from other leveraged and inverse ETFs.

Total Net Assets (AUM): 22735054

Key Competitors

• Direxion Daily META Bull 2X Shares (METU)
• Direxion Daily TSLA Bull 2X Shares (TSLL)
• GraniteShares 1.75x Long NVDA Daily ETF (NVDL)

Competitive Landscape

The leveraged ETF market is competitive, with several issuers offering products that amplify the returns of popular stocks. COINL's advantage lies in its specific focus on Coinbase, but it faces competition from broader technology or cryptocurrency-related leveraged ETFs. COINL's disadvantage is its high risk due to leverage and concentration on a single stock.

Historical Performance: Historical performance is highly dependent on Coinbase stock's daily movements, magnified by the 1.5x leverage. Data not readily available to be populated here.

Benchmark Comparison: The ETF's benchmark is 1.5 times the daily percentage change of Coinbase (COIN). Performance is expected to track this benchmark closely, although deviations may occur due to fees, expenses, and tracking errors.

Expense Ratio: 1.15

Average Trading Volume

The average trading volume of COINL is moderate, reflecting its niche focus and leveraged nature.

Bid-Ask Spread

The bid-ask spread can be wider than traditional ETFs due to its leveraged structure and single-stock focus.

Market Environment Factors

COINL's performance is highly influenced by the price movements of Coinbase stock, which in turn is affected by the broader cryptocurrency market, regulatory news, and overall market sentiment towards tech stocks.

Growth Trajectory

The ETF's growth trajectory is tied to the popularity and performance of Coinbase. Any changes to the company's business model or the overall regulatory environment could significantly impact its growth.

Competitive Edge

COINL's main advantage is its targeted exposure to Coinbase stock with a 1.5x leverage factor, allowing investors to amplify their daily returns if they are bullish on the stock. It offers a simple way to gain leveraged exposure without needing to use margin accounts or complex derivative strategies. However, this focused and leveraged approach also presents significant risks, including potential for rapid losses due to adverse price movements and the effects of compounding. Its success relies heavily on Coinbase's performance and investor sentiment.

Volatility

COINL is highly volatile due to its leveraged structure and single-stock focus. Investors should expect significant price swings.

Market Risk

COINL is exposed to the specific risks of Coinbase and the cryptocurrency market, including regulatory risks, technological risks, and competitive pressures.

Ideal Investor Profile

The ideal investor for COINL is an experienced trader with a high-risk tolerance and a strong conviction in the short-term performance of Coinbase stock. This ETF is not suitable for buy-and-hold investors.

Market Risk

COINL is best suited for active traders seeking short-term, leveraged exposure to Coinbase. It is not appropriate for long-term investors or passive index followers.

GraniteShares 1.5x Long COIN Daily ETF (COINL) is a leveraged ETF designed for sophisticated traders seeking amplified daily returns based on Coinbase's stock performance. It is a high-risk, high-reward product unsuitable for long-term investment due to its leveraged structure and single-stock concentration. COINL's performance is heavily reliant on the volatile cryptocurrency market and regulatory landscape. Investors should understand the risks of leverage, compounding, and single-stock exposure before investing.

Data Sources:

• GraniteShares ETF Trust Website
• ETF.com
• Morningstar

Disclaimers:

This analysis is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.