GraniteShares And Ninepoint Rush Out Anthropic Bets Days Before IPO

GraniteShares and Ninepoint Partners have funds ready to trade within days of Anthropic's stock market debut, one pair built to double the stock's daily swings and one built to pay cash twice a month.

Key Takeaways

• GraniteShares says its 2x long AIL and 2x short ANS funds are effective and expected to start trading on Nasdaq on Nov. 23
• Ninepoint's ANHI fund is expected to list in Toronto the business day after Anthropic's IPO
• Anthropic set a price range of $70 to $78 a share for 825 million Class A shares
• GraniteShares warns its funds are daily tools, and Ninepoint says ANHI's cash payouts are not fixed

GraniteShares said on Nov. 13 that Anthropic set the range in the second amendment to its S-1 filing on Nov. 10. Published reports point to pricing on Nov. 18 and trading on Nov. 19, but Anthropic has not publicly confirmed its listing date. At the top of the range, the sale would raise about $64 billion.

Also Read: Anthropic Chases $64B In Second-Biggest IPO Ever, Behind Only SpaceX

How The GraniteShares Funds Work

AIL, the GraniteShares 2x Long Anthropic Daily ETF, seeks 200% of each day's move in Anthropic's stock, which will trade on Nasdaq as ANT. ANS, the 2x Short fund, seeks the opposite, -200% of each day's move. Both targets are before fees and expenses, and both funds reset at the end of every trading day.

The funds get their exposure through swap agreements tied to ANT shares rather than margin or options, which is why they can only start once ANT trades. Founder and CEO Will Rhind said: "They are precise daily tools, and we want everyone using them to understand how the daily reset works."

GraniteShares warns that over periods longer than one day, returns can differ sharply from twice the stock's move, and investors can lose principal.

How Ninepoint's ANHI Works

Ninepoint has filed a final prospectus for the Ninepoint Anthropic HighShares ETF, ticker ANHI. It can hold up to 100% of its assets, including borrowed money, in Anthropic Class A stock, and it writes covered calls on up to 50% of those shares. A covered call means the fund sells someone the right to buy its shares at a set price, collecting cash now but giving up some upside.

The fund plans to pay cash twice a month, but the amount is not fixed and a payout can be skipped. The management fee is 0.29%, and Ninepoint rates its risk as high. It is set up as an alternative mutual fund, which allows leverage and a concentrated bet on one company.

Karl Cheong, head of ETFs at Ninepoint, said "we anticipate strong interest from Canadians seeking TSX-listed exposure."

Read Next: Short Anthropic ETF Filing Seeks Double Inverse Daily Return

Originally published on Fathom News.