In a shocking turn of events, VelocityShares has responded to trader outrage over its closure of two popular triple leveraged oil ETNs by essentially re-launching them under slightly different tickers.
Two highly popular triple leveraged oil ETPs will be delisted today, perhaps marking the beginning of the end for a whole slew of similar products that have drawn criticism from regulators.
Many traders were understandably disappointed when Credit Suisse unexpectedly announced they would shutter their two triple leveraged oil funds next month, but another issuer is wasting no time in stepping up to provide an alternative.
Leveraged bull oil ETFs surged in early trading Wednesday as headlines around the world indicated that OPEC oil ministers are unanimously in favor of a production cut.
Traders looking to place high-stakes bets on oil prices will have two less tools are their disposal next month, when two popular VelocityShares ETNs are delisted.
Oil prices were plunging once again on Friday morning, as news of much higher OPEC oil production in October cast doubts over the prospects of a coordinated production cut this month.
With WTI crude oil futures surging past the key $50 per barrel level this morning, traders are piling into leveraged bullish oil bets on the ETF side of the markets.
Analyst JR Crooks, III delves into OPEC’s recent production limit, and what it actually means for energy investors.
It is hard not to notice the phenomenal up move that crude oil futures have had in the past 36 hours, with the largest tracker, USO, rallying nearly 9% since yesterday.
Yesterday was a banner day for leveraged bull oil funds, which posted massive gains amid news of an impending OPEC production limit. Can these ETFs continue to rise, or will the gains once again prove fleeting?
The VelocityShares 3x Long Crude Oil ETN (NYSE:UWTI) shot higher this afternoon on strong trading volume, after oil cartel OPEC reportedly agreed to limit crude oil production.
The United States Oil Fund LP ETF (NYSE:USO) is falling another nearly 2% this morning, as crude oil prices continue their now two-week pullback.
The VelocityShares 3x Long Crude Oil ETN (NYSE:UWTI) had bounced strongly off its recent lows amid an oil price recovery, but today the triple leveraged bull play is hitting weekly lows.
According to recent TD Ameritrade data compiled by Bloomberg, the world’s youngest age cohort has been pouring money into a leveraged oil ETN — right into the teeth of a massive oil price decline.
NYSEARCA:USO, NYSEARCA:OIL, NYSEARCA:UWTI, NYSEARCA:DWTI, NYSEARCA:UCO