TESLA’S GROWING ASSOCIATION WITH CRYPTOCURRENCIES
Posted:TESLA’S GROWING ASSOCIATION WITH CRYPTOCURRENCIES
COULD BE BAD NEWS FOR ITS SHARE PRICE VOLATILITY
Will Rhind, Founder and CEO at ETF provider GraniteShares is warning that Elon Musk’s growing association with cryptocurrencies could lead to growing volatility in Tesla’s share price.
Elon Musk has just announced that his rocket company SpaceX will now accept the meme-inspired cryptocurrency dogecoin as payment. Earlier this year Tesla bought $1.5 billion of Bitcoin, and Elon Musk regularly posts positive comments about cryptocurrencies on Twitter.
Will Rhind, Founder and CEO at GraniteShares said: “Cryptocurrencies are hugely volatile and although many have seen huge recent growth in their valuations, it is not so long ago when these were rock bottom and people talked of cryptocurrency ‘winters’. I fear that as Elon and Tesla become more aligned to cryptocurrencies, the company’s share price will become increasingly correlated to them and this will bring increased volatility, which will lead to more trading in the stock.”
GraniteShares offers several 3x long and 3X short ETPs on FTSE 100 and S&P 500 single stocks, including Tesla.
The most traded 3x leveraged GraniteShares single stock ETP in 2021 so far is Tesla (3LTS). The value traded in it year to date is $147.5 million, which makes up 66% of all of the trading in its 3X long single stock ETPs.
Similarly, the most traded 3x short GraniteShares single stock ETP in 2021 so far is Tesla (3STS). The value traded in it year to date is $22.4 million, which makes up 41% of all of the trading in its 3X short single stock ETPs.
GraniteShares currently offers 54 exchange traded products (ETPs) listed on the London 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 and U.S. markets.
GraniteShares suite of ETPs on FAANG stocks
Product Name | Ticker |
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GraniteShares FAANG ETP |
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GraniteShares GAFAM ETP |
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GraniteShares FATANG ETP |
GraniteShares Short and Leveraged ETPs on FAANG stocks
Underlying Index | +3x Long | -3x Short | -1x Short |
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FAANG |
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GAFAM |
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FATANG |
GraniteShares Short and Leveraged Single Stock Daily ETPs on UK companies
Underlying stock | +3x Long | -3x Short |
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AstraZeneca |
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BAE Systems |
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Barclays |
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BP |
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Diageo |
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Glencore |
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Lloyds Banking Group |
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Rio Tinto |
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Royal Dutch Shell |
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Rolls-Royce |
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Vodafone |
GraniteShares Short and Leveraged Single Stock Daily ETPs on US technology companies
Underlying stock | +3x Long | -3x Short |
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Alphabet |
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Amazon |
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Apple |
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Microsoft |
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Netflix |
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NIO |
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NVIDIA |
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Tesla |
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Uber |
GraniteShares: A brief history
GraniteShares is an entrepreneurial ETP provider focused on providing sophisticated 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 around $1.5 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 Messels Limited 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.