GraniteShares 2x Short COIN Daily ETF (CONI) Covered Calls

The GraniteShares 2x Short COIN Daily ETF is a leveraged inverse exchange-traded fund designed to provide twice the inverse (-2x) daily performance of Coinbase Global, Inc. (COIN). Through the use of swap agreements with major financial institutions, the fund allows sophisticated traders to capitalize on downward price movements or hedge exposure to the leading U.S. crypto exchange. As a daily-resetting vehicle, it is subject to compounding and volatility drag over multi-day periods.

You can sell covered calls on GraniteShares 2x Short COIN Daily ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for CONI (prices last updated Fri 4:16 PM ET):

GraniteShares 2x Short COIN Daily ETF (CONI) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
103.31 -37.06 103.19 104.69 214K - 0.0
Covered Calls For GraniteShares 2x Short COIN Daily ETF (CONI)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 105 9.80 94.89 10.3% 251%
Mar 20 105 16.70 87.99 19.0% 161%
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Extended Business Description

GraniteShares 2x Long COIN Daily ETF is a high-conviction tactical tool for investors seeking to profit from declines in the valuation of Coinbase Global, Inc. (COIN). By targeting -200% daily exposure, CONI provides a capital-efficient way to express a bearish outlook on the digital asset infrastructure sector without the need for a margin account or direct short-selling of equity. Following a significant reverse stock split in mid-2025 to improve trading price efficiency, the fund remains a primary instrument for "risk-off" digital asset strategies in 2026.

Core Strategy and Operations

  1. Inverse Leveraged Swaps: The fund achieves its -2x objective by entering into over-the-counter (OTC) swap agreements with counterparties such as Marex. These derivatives are adjusted daily to maintain a notional exposure of approximately 200% of the fund’s net asset value in a short position against COIN.
  2. Collateral Efficiency: A substantial portion of the fund’s assets—often exceeding 35%—is held in high-quality U.S. Treasury Bills. This collateral not only backs the swap obligations but also captures current yields, helping to offset the fund’s operational costs and management fees.
  3. Daily Rebalancing: CONI is designed for a single-day holding period. The daily reset mechanism means that in highly volatile or "choppy" markets, the fund may experience "NAV erosion" due to compounding, even if the price of Coinbase ends lower over a longer timeframe.

Competitive Landscape

CONI is the leading leveraged bear vehicle for the crypto-equity sector. Its most direct competitor is the ProShares Short Bitcoin ETF (-1x) for those seeking inverse crypto exposure without leverage, and the ProShares UltraShort Bitcoin ETF (-2x) for a direct bet against Bitcoin price. Within the single-stock ecosystem, it is often traded alongside the Defiance Daily Target 2X Short MSTR ETF. Bullish counterparts frequently used for "pair trades" include the GraniteShares 2x Long COIN Daily ETF and the T-Rex 2X Long MSTR Daily Target ETF.

Strategic Outlook and Innovation

As of 2026, GraniteShares has positioned CONI as a "volatility-harvesting" tool for institutional desks. A key strategic focus is maintaining a net expense ratio of 1.15% through a contractual fee waiver active until December 31, 2026. Innovation within the fund is centered on the use of "synthetic forward" positions—simultaneously buying at-the-money puts and selling at-the-money calls—to maintain exposure when swap liquidity in the OTC market is constrained. As Coinbase matures into a diversified financial services hub, CONI is increasingly used by market makers to hedge the "gamma risk" associated with the massive Coinbase options market. By providing a regulated, exchange-traded path to -2x leverage, CONI seeks to remain the benchmark for bearish sentiment in the digital asset infrastructure space.