The firm’s most popular vehicles are VelocityShares Daily Inverse VIX Short-Term ETN (NYSEArca: XIV) and VelocityShares Daily 2X VIX Short-Term ETN (NYSEArca: TVIX).
The company has quickly gathered $550 million in assets, or about 25% market share in the VIX space, said VelocityShares co-founder and chief investment officer Nick Cherney in a telephone interview Wednesday.
He said some traders are tapping VelocityShares Daily Inverse VIX Short-Term ETN in an attempt to profit long term from contango and negative roll yield. Still, moves higher in the VIX could overwhelm contango, Cherney added. The ETN is an inverse product that tends to rise when the VIX falls.
VelocityShares Daily 2X VIX Short-Term ETN (NYSEArca: TVIX)
