The GraniteShares 2x Long Coinbase Daily ETF (CONL) is experiencing significant downward pressure due to a confluence of factors impacting its underlying asset, Coinbase (COIN). The primary catalyst for the decline is the imposition of new tariffs by President Donald Trump on imports from Canada, Mexico, and China, which has sparked fears of a global trade war. This has led to a broad sell-off in risk assets, including cryptocurrencies, as investors react to the potential economic slowdown. The cryptocurrency market, closely tied to Coinbase's performance, has seen substantial declines, with Bitcoin and Ethereum experiencing sharp drops, exacerbating the negative sentiment around crypto-related stocks.
Coinbase shares have been particularly affected, trading 5.5% lower as of February 3, 2025. The broader market turmoil, driven by the tariff announcements, has led to a significant pullback in crypto markets, with Bitcoin falling below key support levels and Ethereum hitting multi-month lows. This has resulted in nearly $2 billion in liquidations across the crypto market, further intensifying the downward pressure on Coinbase and, by extension, the CONL ETF. The heightened volatility and uncertainty in both traditional and crypto markets are contributing to the ETF's current performance.
The GraniteShares 2x Long Coinbase Daily ETF (CONL) is currently priced at $41.11, reflecting an 11.19% decrease from its previous close.