The GraniteShares 2x Long Coinbase Daily ETF (CONL) is experiencing downward pressure due to several factors impacting its underlying asset, Coinbase Global Inc. (COIN). A significant driver of the decline is the recent insider selling activity, where Frederick Ernest Ehrsam III, a director at Coinbase, sold 22,842 shares. This transaction, which took place on January 6, has contributed to a negative sentiment around the stock, as insider sales often raise concerns about the company's future prospects. Additionally, the broader cryptocurrency market is facing headwinds, with the U.S. Department of Justice planning to sell 69,370 Bitcoin worth approximately $6.4 billion. This impending sale has fueled bearish sentiment, as large-scale liquidations by the government have historically led to short-term price corrections in the crypto market.
Moreover, Bitcoin's market dynamics are adding to the pressure on Coinbase. The cryptocurrency's Options Open Interest has dropped to historic lows, indicating a cautious approach among traders amid macroeconomic uncertainties. This decline in speculative activity suggests a cooling off in the market, which could impact trading volumes and price stability. Furthermore, Bitcoin's price has been volatile, with technical indicators signaling potential further declines. These factors collectively contribute to the challenges faced by Coinbase, as its performance is closely tied to the overall health of the cryptocurrency market.
The current price of CONL is $36.50, reflecting a 3.97% decrease from the previous close.