“Credit Suisse — which is the largest holder of the ETN — issued a statement saying the bank has not suffered any trading losses due to the XIV implosion. Nevertheless, the Swiss lender this morning set a redemption date of Feb. 20, for the volatility note, well ahead of the Dec. 4, 2030, maturity date,” according to Schaeffer’s Investment Research.

Last year, traders argued that the VIX remained depressed because realized volatility in U.S. equities has diminished and economic fundamentals remain supportive. That sentiment sent traders scrambling into XIV and rival inverse volatility products. For example, XIV doubled in size in August.

ETNs are not exchange traded funds. Similar to index-based ETFs, ETNs also track some sort of index as part of their investment strategy. However, an exchange traded note, like the name implies, is a type of debt note that trades on an exchange. Consequently, investors are exposed to the credit risk or the possibility the underwriting bank.

For more information on the CBOE Volatility Index, visit our VIX category.