VXDN came into Wednesday with nearly $8.7 million in assets under management. That is a decent start for the bearish volatility product, particularly when considering market participants have pulled cash from inverse volatility funds this year. The VelocityShares Daily Inverse VIX Short-Term ETN (NYSEArca: XIV) and ProShares Short VIX Short-Term Futures ETF (NYSEArca: SVXY) have lost $680 million and $454.2 million, respectively, this year despite each rising 46%. [Market Complacency on the Rise]

During normal conditions, a falling VIX would reflect increased confidence and strengthening in the equities market, and vice versa. However, despite the swings, the relatively flat market this year has pressured the VIX.

iPath S&P 500 VIX Short-Term Futures ETN