Deep Sail Capital on X
@thegresearch @LeoPTrudel What’s the borrow rate on $BWET, I see 98%.
NYSEARCA
ETF Managers Group Commodity Trust I
BWET
6 stories
Unknown Market cap
SG on X
@GardinerIsland also worth noting that $BWET is 90% one tanker route. It is not a clear reflection of global tanker margins.
Deep Sail Capital on X
Trading around $BWET has been crazy with +10% moves pretty regularly. One of the more interesting ETF situations that I have come across. https://t.co/KmOjtlbCUR
Deep Sail Capital on X
$BWET up 5,400% over the last year, but can you short it? https://t.co/DTOpkmZxsf
SG on X
Here's what I don't understand about $BWET : - the fund supposedly invests in exchange-cleared freight futures, not swaps tied to a freight futures index. See below from the latest 10-Q for the commodity trust, available on the fund docs page. - when I look up the futures I see no volume at all on CME, and I can't find an actual derivatives (not just index) quote on Bloomberg that shows volume traded - if the freight futures barely trade on exchange, what happens when the ETF needs to buy futures to issue shares or sell futures to redeem? What % of the OI in the lead months does the ETF own? - Is the underlying Ras Tanura to Ningbo specification for the futures accounting for ~90% of holdings relevant right now with pipeline diversion and tankers going dark through the strait? Without this information it seems impossible to even guess at how crazy things could get should the ETF see a lot of buy or sell interest. cc: @DryBulkETF @TheShortBear @EricBalchunas
SG on X
this is definitely about the war and the strait, but even more specifically the route to China from the gulf. Derivatives on that route account for about 90% of $BWET holdings. I'm not sure how frequently the underlying derivatives trade and cannot find a chart. Even on the terminal I can only chart the index not any derivatives that might show volume.
