Following the SEC’s approval, the company launched the 1.5x Long COIN Daily ETF (CONL) on the market on the same day as Coinbase reported its Q2 data.
GraniteShares and the launch of the new leveraged ETF on Coinbase
For the past few years, GraniteShares has been listing single stock ETFs backed by collateral all over the world. Its core business is in Europe, but since the SEC studied the ETF and gave its approval, it has landed in the US market with a Coinbase leveraged instrument.
By coming to the US market, GraniteShares increases its level of security and also denotes an upgrade in the quality of the product offered to investors who will want to benefit from it.
The GraniteShares 1.5x Long COIN Daily ETF (CONL) was launched on 9 August at $23.35, then traded at $22.70, while sales volume recorded good levels.
Will Rhind of GraniteShares also launched the Tesla ETF short and 1.25x long as well as an Apple ETF 1.75x long.
The fund head explained how an ETF is certainly safer than the stock market:
“You can’t lose more than your investment. When you have a traditional margin account and with traditional forms of leverage, you can lose more of your investment and end up owing money to the broker, which can be very dangerous. With ETFs you can’t. it is so”.
On the possibility of a Bitcoin-based ETF, he pointed out that the SEC has left no room for doubt and said:
“The commission was clear enough that it is not going to happen. Even if there was a leveraged bitcoin ETF, it won’t affect us much, because clearly bitcoin and Coinbase are two different things.
When it comes to choosing our seats, we have opted for longer products, because that’s where we see most of the demand in Europe, with the exception of Tesla. We see a lot of demand for Tesla, even though we have more demand on the long side than on the short side, but there is a lot of demand on both sides”.
The latest quarterly results of Coinbase (COIN)
Coinbase’s quarterly results came out on the same day, which saw its projections miss by 5% ($803 million compared to the $854.8 million estimated as a target with a 5% decline).
Overall revenue deteriorated from $1.17 billion in the first quarter of this year to the current $803 million.
Despite this, the platform paused to explain in its statement how one data point out of all is interesting and bodes well for the future:
“We highlight 44% year-over-year growth because it helps demonstrate that these revenues are less volatile than transaction revenues. We have paused some smaller and longer-term products and plan to sequence our international growth efforts”.