3 ms·

I'm surprised you think the price matters. It doesn't. It's an index fund. Crypto traders will trade it regardless if it's low or high. In fact it's probably ev

by mrb 8y ago

I'm surprised you think the price matters. It doesn't. It's an index fund. Crypto traders will trade it regardless if it's low or high. In fact it's probably even better to launch it now (low price = buying opportunity.)

JumpCrisscross 8y ago
> I'm surprised you think the price matters. It doesn't. It's an index fund. Volatility increases tracking error; this benefits traders but hurts investors. Furthermore, AUM is not delta neutral. When an asset goes up its ETF attracts capital; when it goes down the ETF tends to lose capital. Since ETF economics are a measure on assets under management (AUM), ETF sponsors generally want their ETF to go up.
- deleted 8y ago
  [deleted]
- evanpw 8y ago
  I know you said "generally", but there are some significant exceptions (like VXX): https://finance.yahoo.com/chart/VXX#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 https://finance.yahoo.com/chart/VXX#eyJpbnRlcnZhbCI6IndlZWsi... Even the prospectus says "The long term expected value of your ETNs is zero": http://www.ipathetn.com/US/16/en/details.app?instrumentId=259118 http://www.ipathetn.com/US/16/en/details.app?instrumentId=25...

by mrb 8y ago

JumpCrisscross 8y ago

> I'm surprised you think the price matters. It doesn't. It's an index fund. Volatility increases tracking error; this benefits traders but hurts investors. Furthermore, AUM is not delta neutral. When an asset goes up its ETF attracts capital; when it goes down the ETF tends to lose capital. Since ETF economics are a measure on assets under management (AUM), ETF sponsors generally want their ETF to go up.

deleted 8y ago
[deleted]
evanpw 8y ago
I know you said "generally", but there are some significant exceptions (like VXX): https://finance.yahoo.com/chart/VXX#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 https://finance.yahoo.com/chart/VXX#eyJpbnRlcnZhbCI6IndlZWsi... Even the prospectus says "The long term expected value of your ETNs is zero": http://www.ipathetn.com/US/16/en/details.app?instrumentId=259118 http://www.ipathetn.com/US/16/en/details.app?instrumentId=25...