GraniteShares 2x Short COIN Dai (CONI)

Key Updates

CONI has advanced +2.61% since the last report, rising from $50.68 to $52.01, driven by a sharp +6.32% single-day gain that partially offset a -4.63% five-day pullback. As a 2x leveraged inverse product tracking Coinbase (COIN), this move implies renewed downside pressure on the underlying COIN shares over the past session, consistent with lingering market digestion of Coinbase's disappointing Q2 results reported July 30. No new incremental news has emerged since the last update; the single new item reinforces the earnings miss already factored into recent volatility.

Current Trend

CONI remains down -23.76% YTD and -51.12% over six months, reflecting the extended rally in COIN shares over that period as crypto markets stabilized and recovered from earlier lows. The disconnect between the YTD figure (-23.76%) and COIN's reported ~30% YTD decline as of mid-July (per Decrypt) highlights the compounding/decay effect inherent in leveraged inverse products, where daily rebalancing erodes returns during volatile, non-trending underlying price action. Short-term price action remains highly erratic: a -9.70% drop (Aug 6-7), a +2.34% rebound, and now a further +2.61% gain within a matter of sessions, indicating no stable directional trend and elevated whipsaw risk.

Investment Thesis

CONI provides leveraged short exposure to COIN and is designed to perform when Coinbase shares decline, driven by weaker trading volumes, softer transaction revenue, and broader crypto market corrections. The product's viability depends on sustained downward momentum in COIN; any reversal, recovery in crypto markets, or elevated realized volatility works against holders due to the compounding structure of daily-reset leveraged ETPs.

Thesis Status

The thesis remains only partially validated. Coinbase's Q2 earnings miss (revenue of $1.2B vs. $1.3B consensus, EPS loss of $1.36 vs. expected $0.17) supports the bearish COIN narrative underpinning CONI's design. However, bullish options positioning, a completed technical "double-bottom" pattern on Bitcoin, and a sharp 11% COIN rally to $178 in late July indicate meaningful counter-trend risk. The 6-month decline of -51.12% in CONI underscores that COIN has broadly trended higher over this period, working against the short thesis and amplifying the leverage-decay drag. Near-term price action (the +6.32% single-day surge) suggests temporary reassertion of the bearish COIN thesis, but the broader multi-month trend remains unfavorable for CONI holders.

Key Drivers

The primary driver remains Coinbase's fundamental performance, highlighted by its Q2 2026 earnings miss, marking a third consecutive quarter of revenue and profit shortfalls amid softening transaction revenue and ETF outflows. Counterbalancing this, bullish options flow in COIN and Robinhood signals trader expectations for a broader crypto recovery. Analyst commentary from William Blair and Piper Sandler reflects a mixed picture: reduced revenue/EBITDA estimates and lower price targets, yet maintained "outperform" ratings premised on an anticipated bottoming of trading volumes and Bitcoin price action.

Technical Analysis

CONI trades at $52.01, up 6.32% intraday but down 4.63% over the trailing five days, reflecting continued high volatility typical of leveraged inverse products tracking a single volatile equity. The 1-month return of +0.81% versus the 6-month decline of -51.12% illustrates a stabilization phase following a prolonged downtrend, though the erratic session-to-session swings (-9.70%, +2.34%, +2.61%) suggest the absence of a confirmed reversal pattern. Given the underlying COIN reference to a support zone near $150 (cited in COIN technical commentary), sustained breaches below that level would be required to reinforce a durable uptrend in CONI; failure to hold implies continued downside risk for this inverse product.

Bull Case (CONI Upside / COIN Downside)

• Q2 earnings miss: Coinbase reported a net loss of $359.5M vs. a $1.43B profit a year earlier, with revenue falling to $1.2B from $1.5B, missing consensus for the third straight quarter — CNBC
• Analyst estimate cuts: William Blair reduced 2026/2027 revenue estimates by 12-13% and adjusted EBITDA projections by 34%; Piper Sandler cut its price target to $155 from $170 — Decrypt
• Trading volume decline forecast: William Blair projects total trading volume to fall ~44% in 2026 to $669B — Decrypt
• Structural revenue softness: Range-bound Bitcoin prices and sustained ETF outflows continue to weigh on transaction revenue, a core Coinbase business line — CNBC
• Recent price momentum: CONI's +6.32% one-day gain signals renewed short-term downward pressure on COIN shares

Bear Case (CONI Downside / COIN Upside)

• Bullish options positioning: Over 114,000 COIN calls traded against ~50,000 puts, with call purchases outpacing puts more than 4-to-1 and $80M of $100M total options premium tied to calls — CNBC
• COIN price rebound: Shares surged ~11% to $178, recovering from a sub-$150 level that has acted as recurring support since early 2024 — CNBC
• Maintained "outperform" ratings: Despite estimate cuts, William Blair kept an "outperform" rating, expecting volume declines to reverse with >32% growth in 2027 — Decrypt
• Bitcoin technical bottom signals: A completed "W" double-bottom pattern on Bitcoin's daily chart and declining long-term holder capitulation suggest a potential crypto market trend reversal — Decrypt
• Record market share: CEO Brian Armstrong cited an all-time high crypto trading market share as evidence of Coinbase's resilience across market cycles — CNBC