The GraniteShares 1x Short COIN Daily ETF, which inversely tracks the performance of Coinbase Global Inc., saw a notable uptick in its price on November 26, 2024. This movement is closely tied to the recent developments in the cryptocurrency market, particularly the performance of Bitcoin. Bitcoin has experienced a significant retreat from its near $100,000 high, dropping to around $91,100 as of the afternoon of November 26. This decline marks the longest losing streak for Bitcoin since the U.S. election victory of Donald Trump, which initially fueled optimism for a more crypto-friendly regulatory environment.
The downturn in Bitcoin's price is attributed to a combination of profit-taking by investors who entered the market at higher price points and the third-largest day of outflows from Bitcoin ETFs on record, amounting to $435.3 million. This selling pressure has been exacerbated by the broader market's reaction to the potential regulatory changes under the incoming Trump administration, which aims to expand the Commodity Futures Trading Commission's oversight of digital assets. The uncertainty surrounding these regulatory shifts has contributed to the volatility in Bitcoin's price, impacting related equities such as Coinbase.
The GraniteShares 1x Short COIN Daily ETF closed with a 6.33% increase, reflecting the inverse relationship with Coinbase's performance amid the cryptocurrency market's turbulence.