A surge in trading volumes has resulted in an increase of $500m in AUM in less than one month at exchange-traded products (ETPs) provider GraniteShares, taking its total AUM to above $2.5bn.
The global ETP issuer, which launched in the US in 2017 and the UK in 2019 before expanding to France, Italy and Germany, hit $2bn AUM in early February and reached $2.5bn by the end of the month, on the back of rising demand for single stock leveraged ETPs.
Expansion has been accelerated 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 $22.1bn, 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 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 record 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%.
GraniteShares’ FAANG, GAFAM and FATANG product suite, offers long, short and 3x leveraged ETFs on FAANG, GAFAM and FATANG indices and can be traded in a single ticker symbol via ordinary brokerage accounts.
