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SHORT SELLERS TARGET FACEBOOK OWNER AFTER RECORD DAILY LOSS

SHORT SELLERS TARGET FACEBOOK OWNER AFTER RECORD DAILY LOSS

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Publication Type: Market Commentaries

SHORT SELLERS TARGET FACEBOOK OWNER AFTER RECORD DAILY LOSS

  • Trading in GraniteShares 3xShort Meta Platforms 3SFB climbs by 287%
  • Assets under management in its range of 3X Short ETPs have surged in sell-off

   February 9th, 2022 – 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

Product Name Ticker

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

FAANG

3FNG

3SFG

SFNG

GAFAM

3GFM

3SGF

SGFM

FATANG

3FTG

3SFT

SFTG

 

UK Leveraged Single Stock ETPs

Underlying stock +3x Long -3x Short

AstraZeneca

3LAZ

3SAZ

BAE Systems

3LBA

3SBA

Barclays

3LBC

3SBC

BP

3LBP

3SBP

Diageo

3LDO

3SDO

Glencore

3LGL

3SGL

Lloyds Banking Group

3LLL

3SLL

Rio Tinto

3LRI

3SRI

Royal Dutch Shell

3LRD

3SRD

Rolls-Royce

3LRR

3SRR

Vodafone

3LVO

3SVO

 

US Leveraged Single Stock ETPs

Underlying stock +3x Long -3x Short

Alphabet

3LAL

3SAL

Amazon

3LZN

3SZN

Apple

3LAP

3SAP

Facebook

3LFB

3SFB

Microsoft

3LMS

3SMS

Netflix

3LNF

3SNF

NIO

3LNI

3SNI

NVIDIA

3LNV

3SNV

Tesla

3LTS

3STS

Uber

3LUB

3SUB

 

Capital at risk

-Ends-

Notes to editors:

For further information please call Phil Anderson at Perception A on 07767 491 519 / 07983 335 021.

Data range: December 6-10 vs January 17-21

GraniteShares: A brief history

GraniteShares is an entrepreneurial ETP provider focused on providing professional investors with innovative, cutting-edge investment solutions. We believe the future of investing lies at the nexus of alternative thinking, low fees, and disruptive product structures—the core of our high conviction philosophy. Backed by Bain Capital Ventures, we launched our first product in 2017 and are now among the fastest growing ETP issuers with over $1.6 Billion in assets under management* spanning a full array of investment strategies.

This press release is issued by GraniteShares Limited. GraniteShares Limited (FRN 798443) is an appointed representative of Kroll Securities Ltd. (FRN 466588) which is authorised and regulated by the Financial Conduct Authority.

ETPs are issued by GraniteShares Financial PLC, a company incorporated in Ireland.

Investing in GraniteShares ETPs on U.S. listed stocks

Those trading GraniteShares new US leverage and inverse ETPs will not need to complete a W-8BEN form (US Department of the Treasury, Internal Revenue Service, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting).

The ETPs can be held in self-select ISAs and SIPPs.

There is no margin requirement and losses cannot exceed the amount invested.

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