GraniteShares has announced the listing of multiple single share ETFs on the Nasdaq, including one for Coinbase (NASDAQ:COIN). GraniteShares first launched leveraged ETFs on single stocks in the UK in 2019.
While ETFs started as a less expensive path for a diversified portfolio of assets, a single share ETF typically provides leveraged exposure, either short or long, to a security that can drive returns more dramatically as well as losses. Some investors are interested in the ability to trade in the short term based on event-driven expectations. The Securities and Exchange Commission (SEC) has issued a statement of caution on these single-share ETFs.
Last month the SEC stated:
“[single share ETFs] they are not right for every investor. Levered and/or inverse single-stock ETFs pose risks that are unique and complex. We encourage all investors to consider these risks carefully before deciding to invest in levered and/or inverse single-stock ETFs.”
CONL is the first ETF to allow investors to trade leveraged Coinbase that is 1.5X Long COIN.
Will Rhind, founder and CEO at GraniteShares commented on the listings saying they are giving more sophisticated investors a new type of investment that previously did not exist.
“GraniteShares pioneered this market in Europe and we now have a leading franchise offering 106 products on major European exchanges. Short and Leveraged single stock ETFs have been very popular in Europe and we’re excited to now bring ETFs on some of the most popular stocks such as Tesla, Coinbase and Apple to the U.S. market,” said Rhind.
He added that this is the first step of a wider rollout of similar products providing more choice to investors.
Coinbase dipped in after-hours trading yesterday following an earnings report that highlighted tepid results and an over one billion dollar loss. Today, Coinbase is experiencing a bounce along with the broader market reacting to generally positive news on inflation. At this moment, shares in COIN are up around 7% and shares in CONL around 8%.
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