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

Overview

The GraniteShares 1.5x Long COIN Daily ETF (COINL) seeks to provide 1.5 times the daily percentage change of the common stock of Coinbase Global, Inc., offering investors a leveraged exposure to Coinbase's performance. It is a leveraged ETF focused on a single stock.

Reputation and Reliability

GraniteShares is a smaller ETF issuer known for its range of leveraged and inverse ETFs. They are considered reliable but cater to a specific, higher-risk investment strategy.

Management Expertise

GraniteShares' management team possesses expertise in structuring and managing leveraged ETFs, which requires precise tracking and risk management.

Goal

To provide 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 daily leveraged strategy, aiming to amplify the daily returns of Coinbase stock.

Composition The ETF primarily holds financial instruments (e.g., swaps, futures) designed to provide the 1.5x leveraged exposure to Coinbase stock rather than holding the underlying stock directly.

Market Share: Highly specific and niche; difficult to quantify overall market share as it's tied to a single stock and leveraged.

Total Net Assets (AUM): 27924663

Key Competitors

• Direxion Daily META Bull 2X Shares (METU)
• Direxion Daily TSLA Bull 2X Shares (TSLL)
• Direxion Daily NVDA Bull 2X Shares (NVDU)

Competitive Landscape

The competitive landscape involves other leveraged single-stock ETFs. COINL's advantage lies in its specific focus on Coinbase, attracting investors bullish on that particular company. Disadvantages include high risk, daily reset eroding long-term gains, and concentration risk.

Historical Performance: Historical performance is highly volatile due to the leveraged nature and dependence on a single stock. It can experience significant gains or losses in short periods.

Benchmark Comparison: The ETF's performance is benchmarked against 1.5 times the daily performance of Coinbase (COIN). Tracking error can occur due to compounding and ETF expenses.

Expense Ratio: 0.85

Average Trading Volume

The average trading volume varies, but it is generally moderate, potentially leading to wider bid-ask spreads compared to more liquid ETFs.

Bid-Ask Spread

The bid-ask spread can be wider than non-leveraged ETFs due to the leveraged structure and potentially lower trading volume.

Market Environment Factors

Coinbase's performance is influenced by cryptocurrency market sentiment, regulatory changes, and overall stock market conditions.

Growth Trajectory

The growth trajectory is tied to Coinbase's growth and adoption, along with interest in leveraged products.

Competitive Edge

COINL offers a specialized leveraged exposure to Coinbase, appealing to investors seeking amplified daily returns. It differentiates itself by focusing solely on Coinbase, offering a targeted play on the company's stock. The daily reset mechanism allows traders to express short-term views. However, it's not a buy-and-hold investment due to the effects of compounding and potential erosion of value over longer periods. This targeted exposure makes it attractive for sophisticated investors familiar with leveraged products.

Volatility

COINL exhibits very high volatility due to the leveraged exposure and concentration in a single stock.

Market Risk

The ETF is subject to the risks associated with Coinbase, including cryptocurrency market volatility, regulatory risks, and competition. Leveraged ETFs magnify these risks.

Ideal Investor Profile

The ideal investor is a sophisticated trader with a high-risk tolerance, a strong understanding of leveraged ETFs, and a bullish outlook on Coinbase for short-term trading.

Market Risk

COINL is best suited for active traders seeking short-term leveraged exposure. It is not appropriate for long-term investors due to the effects of compounding and potential value erosion.

The GraniteShares 1.5x Long COIN Daily ETF (COINL) provides a leveraged play on Coinbase's daily stock performance, targeting active traders. It carries significant risk due to its leverage and single-stock focus, making it unsuitable for long-term investment. Performance depends heavily on Coinbase's short-term price movements, and its expense ratio is moderately high. Investors should fully understand the risks of leveraged ETFs before investing.

Data Sources:

• GraniteShares official website
• ETF.com
• Yahoo Finance

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investing in ETFs involves risk, including the potential loss of principal. Leveraged ETFs are particularly risky and are not suitable for all investors. Past performance is not indicative of future results.