“The industry as a group makes the argument that they are only dealing with sophisticated investors who read prospectuses and understand the risks,” they analyst added. “This is sort of a fantasy world.” [Volatility ETN Diverges from VIX]
Credit Suisse, the issuer for TVIX, late Thursday said it would reopen share creation for the ETN following the initial plunge. The timing of the announcement has raised eyebrows and caused some to wonder if the move was leaked, Index Universe reports.
VelocityShares Daily 2x VIX Short-Term ETN
An earlier version of this story erroneously said Deutsche Bank is the issuer for TVIX. It has been corrected to reflect Credit Suisse is the issuer.