GraniteShares 2x Short COIN Dai (CONI)

Key Updates

CONI has declined 2.95% from $54.26 to $52.66 since the August 2 report, extending the post-earnings retracement from the July 31 peak of $58.04. The pullback reflects stabilization in Coinbase shares after the Q2 earnings-driven selloff, with bearish sentiment on the underlying stock moderating as options markets price in recovery scenarios and technical indicators suggest potential capitulation lows in Bitcoin. The investment thesis remains tilted toward the bear case for Coinbase, though the velocity of CONI's mean reversion underscores the risks of holding leveraged inverse exposure into consolidation phases.

Current Trend

CONI trades at $52.66, down 22.80% year-to-date and 46.63% over six months, confirming a deeply negative long-term trajectory despite a near-term bounce. The 5-day performance of +21.64% captures the post-earnings spike in the inverse ETF, yet the 1-day decline of -2.95% and the stepwise retracement from $58.04 to $52.66 over four sessions indicate that the underlying COIN is finding a floor above the recent lows. The 1-month gain of +9.78% reflects the volatility of the earnings catalyst but does not reverse the dominant downtrend in CONI.

Investment Thesis

The core thesis for CONI rests on sustained deterioration in Coinbase's operating fundamentals and a prolonged bearish repricing of its equity. Q2 2026 results validated this view with a third consecutive quarterly miss, a net swing from $1.43B profit to a $359.5M loss, and declining transaction revenue amid weak crypto price action and ETF outflows. However, the thesis is challenged by market-wide positioning for a crypto recovery, bullish options flow in COIN, and technical signals suggesting Bitcoin may have formed a bottom. CONI is a tactical, short-term instrument; its 2x daily leverage amplifies both the opportunity from Coinbase's fundamental weakness and the risk from sharp relief rallies in the underlying.

Thesis Status

The bearish thesis is active but pressured. The post-earnings surge to $58.04 represented a near-term realization of thesis value driven by fundamental disappointment. The subsequent 9.3% retracement to $52.66 indicates that the market is not yet pricing in further immediate deterioration and that COIN is consolidating rather than breaking down. Until Coinbase delivers additional negative revisions or crypto markets roll over materially, CONI will face headwinds from mean reversion and bullish positioning in the underlying stock.

Key Drivers

• Coinbase Q2 2026 earnings miss: The company reported a $1.36 per share loss versus a $0.17 loss consensus, revenue of $1.2B versus $1.3B expected, and a third straight quarter of misses on both top and bottom lines. Net losses of $359.5M compared to $1.43B profit in the prior-year period. Source: CNBC
• Bullish options positioning in COIN: Over 114,000 calls traded against 50,000 puts with call buying outpacing put buying by more than four to one, indicating significant market positioning for a recovery. Source: CNBC
• Analyst estimate revisions: William Blair cut 2026 and 2027 revenue estimates by 12% and 13% and adjusted EBITDA projections by 34% while maintaining an "outperform" rating, expecting trading volume to bottom in 2026 before rebounding 32% in 2027. Source: Decrypt
• Crypto technical and on-chain signals: Technical analyst John Bollinger identified a completed "W" double-bottom pattern on Bitcoin's daily chart, while Glassnode data showed long-term holder capitulation peaking and beginning to decline. Source: Decrypt

Technical Analysis

CONI is in a post-spike consolidation phase. The instrument printed a near-term high at $58.04 on July 31 following the earnings reaction and has since retraced in three successive lower closes through $56.43, $54.26, and now $52.66. This establishes $58.04 as stiff resistance and $52.50-$54.00 as an immediate congestion zone. The pre-earnings reference low of $45.71 provides a downside support target should COIN reclaim lost ground. Given the 2x inverse structure, CONI remains vulnerable to gap risk in the underlying; a sustained move in COIN above $160-$170 would likely pressure CONI back toward the $45.00 handle. The YTD and 6-month downtrends remain intact, but the 5-day volatility highlights the product's decay risk during choppy, range-bound trading.

Bull Case

• Coinbase swung to a $359.5M net loss in Q2 2026 from a $1.43B profit in the prior-year period, with revenue declining to $1.2B from $1.5B YoY and missing consensus by $100M, confirming profound earnings deterioration. Source: CNBC
• Transaction revenue softened to $599M amid a range-bound bitcoin market and sustained ETF outflows, indicating structural weakness in Coinbase's core revenue driver that is unlikely to reverse without a major crypto catalyst. Source: CNBC
• William Blair reduced 2026 and 2027 revenue estimates by 12% and 13% and cut adjusted EBITDA projections by 34% in both years, reflecting fundamental downward revisions to Coinbase's earnings power. Source: Decrypt
• Coinbase missed analyst expectations for a third consecutive quarter on both revenue and earnings, establishing a deteriorating fundamental trend that validates the bearish thesis for the underlying equity. Source: CNBC
• Piper Sandler maintains a "neutral" rating and reduced its price target to $155, suggesting limited upside in the underlying stock and a ceiling on COIN's recovery trajectory. Source: Decrypt

Bear Case

• Options markets are pricing a near-term recovery with over 114,000 calls trading against 50,000 puts and call purchases outpacing put purchases by more than four to one, creating powerful gamma dynamics that could force COIN higher and CONI lower. Source: CNBC
• William Blair maintained an "outperform" rating on Coinbase despite estimate cuts, projecting a 32%+ rebound in total trading volume in 2027 and arguing that spot crypto volume will bottom alongside Bitcoin, providing a floor for the stock. Source: Decrypt
• Technical analyst John Bollinger flagged a completed "W" double-bottom pattern on Bitcoin's daily chart as confirmation of a trend change, implying that the crypto cycle low is in place and removing a key tailwind for the inverse ETF. Source: Decrypt
• Glassnode data indicated that long-term holder capitulation in Bitcoin peaked two weeks ago and has begun to decline, suggesting that selling pressure is exhausted and that a supply squeeze could lift crypto-related equities. Source: Decrypt
• Coinbase shares rebounded approximately 11% to trade near $178 on July 21 from a multi-month support level near $150, demonstrating that institutional and retail capital is willing to defend the stock ahead of perceived crypto recoveries. Source: CNBC