GraniteShares 2x Short COIN Dai (CONI)

Key Updates

CONI has declined 10.24% since the August 18 report, falling from $52.25 to $46.90 in the absence of dedicated news coverage on Coinbase (COIN) for this specific move. Given CONI's structure as a 2x daily short (inverse) ETF on COIN, this decline implies a substantial rally in the underlying COIN shares over the period. The move extends a deepening trend: CONI is now down 31.25% YTD and 47.97% over six months, with the 1-day (-11.58%), 5-day (-9.31%) and 1-month (-6.12%) figures showing accelerating downside momentum in the inverse product, consistent with sustained upward pressure on COIN.

Current Trend

The YTD trend in CONI remains firmly negative (-31.25%), reflecting persistent COIN share strength across 2026. The 6-month decline of -47.97% is materially worse than the YTD figure, indicating the majority of the drawdown in the inverse product has occurred more recently, consistent with the July 21 report of a COIN rally to ~$178 off a $150 support base. The prior two reports (August 17-18) had already flagged a volatile, whipsawing pattern in CONI between roughly $49.78 and $52.25; the current $46.90 level breaks decisively below both of these recent reference points, confirming a resumption of the primary downtrend after a brief August 17-18 bounce.

Investment Thesis

CONI is a leveraged instrument designed to deliver -2x the daily return of COIN, making it a tactical tool for traders with a short-term bearish view on Coinbase or the broader crypto-equity complex, rather than a long-term holding due to volatility decay inherent in daily-reset leveraged products. The thesis for holding CONI rests on continued fundamental deterioration at Coinbase (revenue misses, widening losses, ETF outflow-driven softness in transaction revenue) translating into sustained COIN share price weakness. Market-wide factors — bitcoin range-bound trading, crypto sentiment cycles, and options-driven momentum in COIN, IBIT and Strategy — are equally critical to the thesis, given COIN's high beta to crypto asset prices.

Thesis Status

The bearish thesis embedded in CONI continues to underperform. Despite Coinbase's Q2 results missing on both revenue ($1.2B vs. $1.3B consensus) and earnings (-$1.36 vs. -$0.17 expected) with a third consecutive quarter of misses, COIN shares have not sold off in a manner that benefits CONI holders; instead, the July 21 rally to $178 and the subsequent -47.97% six-month decline in CONI indicate COIN has been resilient or rising against a weakening fundamental backdrop. The current -10.24% move, absent new negative Coinbase-specific news, suggests the market continues to reward COIN on narrative (record market share, potential crypto comeback) rather than reported financials, weakening the near-term case for the inverse thesis.

Key Drivers

No company-specific news was published to directly explain the latest -10.24% move in CONI, and the trigger is characterized as price-driven only. The most relevant standing drivers remain: Coinbase's Q2 earnings miss and net loss of $359.5 million versus a $1.43 billion profit a year earlier, driven by softer transaction revenue amid a range-bound bitcoin market and ETF outflows (CNBC); and the bullish options-driven rally in COIN toward $178 on expectations of a broader crypto recovery, with call buying outpacing puts by more than 4-to-1 (CNBC). Separately, the proliferation of new single-stock leveraged/inverse ETFs from issuers like Tradr signals growing structural demand for both bullish and bearish tactical products in the current market environment, though this news does not directly reference Coinbase or CONI (PR Newswire).

Technical Analysis

CONI has broken decisively below the $49.78–$52.25 range that defined price action in the prior two reports (August 17-18), with the current $46.90 print confirming a resumption of the dominant downtrend after a brief bounce. The prior support/resistance band of ~$49.78-$52.25 now functions as resistance on any recovery attempt. Downside momentum is accelerating across all short-term windows (1d -11.58%, 5d -9.31%, 1m -6.12%), a pattern consistent with the sharp 6-month decline of -47.97%, which significantly outpaces the YTD figure of -31.25% and indicates the bulk of CONI's value erosion has been concentrated in the more recent period. No new support level is evident from the data provided below $46.90.

Bull Case

• Coinbase reported a wider-than-expected Q2 loss of $1.36 per share versus a consensus estimate of $0.17, with revenue declining to $1.2 billion from $1.5 billion year-over-year — a third consecutive quarter of misses on both lines, a fundamental headwind that could eventually pressure COIN shares and benefit CONI (CNBC).
• Transaction revenue softened amid a range-bound bitcoin market and sustained ETF outflows, pointing to structural pressure on Coinbase's core revenue driver (CNBC).
• Coinbase's net loss widened to $359.5 million from a $1.43 billion profit in the prior-year period, reflecting a significant year-over-year deterioration in profitability (CNBC).
• Growing issuance of single-stock leveraged and inverse ETFs (e.g., Tradr's new short products on META, AXT and Coherent) demonstrates rising trader demand for bearish tactical instruments amid elevated tech/crypto volatility, a backdrop that could extend to renewed COIN short interest (PR Newswire).
• CONI's steep YTD (-31.25%) and 6-month (-47.97%) declines reflect an extended COIN rally that may be due for consolidation or reversion, offering a potential technical setup for a short-term CONI bounce.

Bear Case

• COIN shares rallied approximately 11% to near $178 in July, rebounding from a $150 support level that had held multiple times since early 2024, with options flow overwhelmingly bullish (over 114,000 calls versus ~50,000 puts, a greater than 4-to-1 call/put ratio) (CNBC).
• CEO Brian Armstrong highlighted an all-time high market share in crypto trading despite the earnings miss, framing the results as evidence of resilience across market cycles (CNBC).
• Broader crypto-recovery positioning is evident beyond Coinbase, with bullish options flow also seen in the bitcoin ETF IBIT and in Strategy, suggesting sector-wide tailwinds that could continue to lift COIN (CNBC).
• Subscription revenue rose to $555 million and increased as a share of Coinbase's total business, indicating a degree of revenue diversification away from volatile transaction fees (CNBC).
• As a 2x daily-reset inverse product, CONI is structurally prone to value decay over time independent of COIN's direction, a dynamic corroborated by the outsized 6-month decline (-47.97%) relative to the YTD figure (-31.25%), making sustained holding periods unfavorable.