A surge in trading volumes has added $500 million assets under management (AUM) in less than one month at innovative Exchanged Traded Products (ETPs) provider GraniteShares taking its total AUM to above $2.5 billion.
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Will Rhind, Founder and CEO at GraniteShares
- Leveraged ETPs linked to AI and Crypto drive increased trading and AUM
- Growing interest in hedging portfolios sees investors going long and short on Nvidia
The global ETP issuer, which launched in the US in 2017 and the UK in 2019 before expanding to France, Italy and Germany, hit $2 billion AUM in early February and then reached $2.5 by the end of the month as demand for single stock leveraged ETPs continues to grow.
Expansion has been turbocharged by investors using its 3x Long Nvidia Daily ETP (3LNV) and 3x Short Nvidia Daily (3SNV) ETPs in the wake of the chip maker’s Q4 results showing record quarterly earnings of $22.1 billion up 22% from Q3 and 265% from the same period last year. Shares in Nvidia are up around 64% year-to-date while Graniteshares 3LNV (3X NVIDA ETP) is up 284%.
Despite the record earnings, investors with GraniteShares, which offers a range of ETPs listed on national exchanges in the UK, France, Italy, and Germany, have been going short and long on the stock. The day before the earnings saw equal numbers of short and long trades.
GraniteShares’ ETPs linked to Coinbase and Meta have also seen growing interest contributing to the rapid growth in trading volumes. Shares of Coinbase have surged alongside the price of Bitcoin with Graniteshares 3X Coinbase ETP (3LCO) offering an alternative way to play the cryptocurrency markets.
European investors earned some outsized returns in 2023 with GraniteShares 3x Long NVIDIA Daily ETP (3LNV) gaining 1824.47%2 and GraniteShares 3x Long MicroStrategy Daily ETP (3LMI) adding 1401.66%3.
Will Rhind, Founder and CEO of GraniteShares, said: “The huge growth in AUM in just the last few weeks is another major milestone underlining how our products enable sophisticated investors to take advantage of investment opportunities in an accessible and affordable way”.
“Even more significant is the leap in trading volumes and the way that investors are making full use of our range of solutions. It might seem counterintuitive that people are shorting Nvidia but it shows that sentiment from both bulls and bears is alive and well”.
“For the longer term it seems clear that AI and crypto related stocks are set to be the major themes of the year ahead with Coinbase and Microstrategy stocks to watch alongside NVIDIA.”
Source: ETFWorld.co.uk
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