ETP provider GraniteShares, which offers a range of 3x short and 3x leveraged ETPs on popular UK, US, and European Stocks, has seen a surge in trading in its Meta Platforms 3x short ETP after the Facebook owner suffered the worst stock market daily loss for a US firm.
The stock market value of Meta Platforms fell by more than £230 billion last week when its share price slumped 26.4% as it announced the first drop in daily active users in its 18-year history. The net worth of chief executive Mark Zuckerberg fell by £31 billion equivalent to the annual GDP of Estonia.
Investors appear to be banking on the slide continuing. Trading in GraniteShares 3xShort Meta Platforms ETP 3SFB increased by 287% over the average daily volume during last Thursday’s record sell-off as traders scrambled to get short exposure.
The wider technology stock sector is also coming under pressure – GraniteShares range of singe stock and index ETPs have seen an increase in trading. Its 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.
FAANG consists of Facebook, Amazon, Apple, Netflix, and Google while GAFAM includes Google, Apple, Facebook Amazon, and Microsoft and FATANG covers Facebook, Amazon, Tesla, Apple, Netflix, and Google.
Market turmoil since the start of 2022 has driven a 166% rise in trading in GraniteShares range of short ETPs on popular stocks amid the recent market sell off. To date, investors have been selling more speculative assets such as unprofitable technology companies, Cryptocurrencies and Meme stocks.
GraniteShares range of Short ETPs, which are designed to rise in value when the underlying stock or index falls, are seeing a surge of interest as sophisticated investors seek to hedge portfolios against market falls.
Will Rhind, Founder and CEO at GraniteShares said: “The share price drop at Meta Platforms has triggered a surge in trading on our Short ETPs underlining how sophisticated investors are willing to take action in volatile markets to hedge risk or to profit from falling prices”
“Short ETPs are fast becoming a popular product in the sophisticated active investor toolkit amid the volatile market swings on both the long and short sides we have witnessed this earnings season.”
Total trading at GraniteShares hit $1.7 billion last year across its range of products listed on the London Stock Exchange, Euronext and Borsa Italiana compared to $130.7 million in 2020. The most popular trades were GraniteShares 3x Long Tesla (3LTS) and GraniteShares 3x Long Rolls-Royce (3LRR) which saw $581 million and $255 million traded across the year, respectively. The majority of investors went long with 76% of investors holding long positions compared with 24% who took short positions.
Assets under management increased to $260 million at the end of 2021 just eight months after hitting the $100 AUM milestone in April last year. The rapid expansion at GraniteShares has been driven by growing demand from sophisticated investors looking for new products to trade the volatile market conditions.
GraniteShares is the first to launch leveraged single stock ETPs on Borsa Italiana with 3x short and 3x long products available across eight leading US stocks and product launches last year included the world’s first leveraged single stock ETP on NIO, the electric vehicle maker and distributor.
It offers a total of 89 exchange traded products (ETPs) listed on the London Stock Exchange, Euronext Paris, and the Italian Stock Exchange. They consist of a suite of index ETPs tracking FAANG stocks and a suite of Short and Leveraged Single Stock Daily ETPs tracking some of the most popular companies in UK US and European markets.
GraniteShares suite of ETPs on FAANG stocks
|GraniteShares FAANG ETP||FANG|
|GraniteShares GAFAM ETP||GFAM|
|GraniteShares FATANG ETP||FTNG|
Leveraged ETPs on FAANG indices
|Underlying Index||+3x Long||-3x Short||-1x Short|
UK Leveraged Single Stock ETPs
|Underlying stock||+3x Long||-3x Short|
|Lloyds Banking Group||3LLL||3SLL|
|Royal Dutch Shell||3LRD||3SRD|
US Leveraged Single Stock ETPs
|Underlying stock||+3x Long||-3x Short|