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 performance of Coinbase Global Inc. (COIN). It is designed for investors seeking leveraged exposure to a single stock within the cryptocurrency ecosystem.

Reputation and Reliability

GraniteShares is a smaller ETF provider, known for offering leveraged and inverse ETFs. Their reputation is tied to the performance and risk management of these specialized products.

Management Expertise

GraniteShares management team has experience in financial markets and specializes in creating and managing leveraged and inverse ETFs. Their expertise lies in the mechanics of derivatives and short-term trading strategies.

Goal

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

Investment Approach and Strategy

Strategy: The ETF uses derivatives, primarily swap agreements, to achieve its 1.5x leveraged exposure to COIN's daily performance. It is a short-term trading vehicle, not intended for buy-and-hold investors.

Composition The ETF primarily holds swap agreements linked to the performance of COIN. It may also hold cash or other short-term instruments to manage its leverage.

Market Share: COINL has a small market share within the leveraged single-stock ETF category.

Total Net Assets (AUM): 22450000

Key Competitors

• Direxion Daily COIN Bull 2X Shares (COIN)
• GraniteShares 1x Short COIN Daily ETF (COINX)
• REX FANG & Innovation Equity Premium Income ETF (FEPI)

Competitive Landscape

The leveraged single-stock ETF market is highly competitive. COINL competes with other leveraged and inverse COIN ETFs, offering different multiples of exposure. Advantages of COINL would be a lower expense ratio or a slightly different exposure multiple. Disadvantages include tracking error and the inherent risks of leveraged products.

Historical Performance: Historical performance is highly dependent on COIN's price movements and the ETF's ability to accurately track 1.5x daily returns. Due to the leveraged nature, long-term performance can deviate significantly from 1.5x COIN's cumulative return.

Benchmark Comparison: The ETF's benchmark is 1.5 times the daily percentage change of Coinbase Global, Inc. Tracking error may occur due to fees, expenses, and the daily rebalancing of the leverage.

Expense Ratio: 0.0115

Average Trading Volume

The average trading volume of COINL varies but is generally moderate, depending on investor interest in COIN and leveraged products.

Bid-Ask Spread

The bid-ask spread can be relatively wide compared to more liquid ETFs, reflecting the ETF's specialized nature and leveraged exposure.

Market Environment Factors

COINL's performance is highly sensitive to factors affecting Coinbase, including cryptocurrency market sentiment, regulatory developments, and competition within the cryptocurrency exchange industry.

Growth Trajectory

COINL's growth trajectory depends on sustained investor interest in leveraged exposure to COIN. Changes to the ETF's strategy or holdings are unlikely, as it is designed to track a specific daily multiple.

Competitive Edge

COINL's competitive advantage is its specific 1.5x leveraged exposure to COIN, catering to investors seeking amplified daily returns on the stock. This ETF gives you a specific leverage factor, allowing for more controlled risk management compared to higher leverage options. GraniteShares also provides inverse single-stock ETFs, and leveraged and inverse ETFs can be used to hedge existing portfolios or to speculate on short-term price movements. This ETF is not meant to be held for longer than a day.

Volatility

COINL exhibits high volatility due to its leveraged nature. Daily percentage gains or losses can be amplified, leading to potentially significant swings in value.

Market Risk

The primary market risk is the volatility of COIN itself. Additionally, there is leverage risk, which can magnify both gains and losses. Compounding of daily returns can also lead to significant deviations from 1.5x COIN's cumulative return over longer periods.

Ideal Investor Profile

The ideal investor is an experienced trader with a high-risk tolerance who understands the mechanics of leveraged ETFs and seeks short-term exposure to COIN.

Market Risk

COINL is suitable for active traders seeking short-term, leveraged exposure to COIN. It is not suitable for long-term investors or those with a low-risk tolerance.

The GraniteShares 1.5x Long COIN Daily ETF (COINL) is a leveraged ETF designed to provide 1.5 times the daily performance of Coinbase Global Inc. (COIN). Due to its leveraged nature, it is best suited for short-term trading and requires a high-risk tolerance. The ETF's performance is highly dependent on COIN's price movements and the accuracy of tracking the 1.5x daily returns. Investors should carefully consider the risks associated with leveraged ETFs before investing.

Data Sources:

• GraniteShares Website
• ETF.com
• SEC Filings

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Leveraged ETFs are complex instruments and involve significant risks. Past performance is not indicative of future results. Consult with a financial advisor before making any investment decisions.