Lucid Stocks Leveraged ETF Delists After 92% Crash, Zero Assets Remain

GraniteShares 2x Long LCID Daily ETF (LCDL) delisted on the 15th (local time) after net asset value turned negative. The leveraged fund tracking Lucid Motors stocks crashed 92% in a single day. On the 14th, Lucid Group shares dropped over 50% intraday amid liquidity crisis and bankruptcy speculation. The swap counterparty force-liquidated derivative positions under contractual rights. The 2x leverage structure drove NAV to -$0.016 per share, leaving zero assets for distribution.

Swap Counterparty Liquidates Positions After Lucid Stocks Drop

On the 14th, Lucid Motors stocks fell more than 50% from the prior close during trading hours. The swap counterparty exercised contractual rights to immediately terminate the swap agreement and liquidate derivative positions. The ETF's 2x leverage structure magnified the underlying stock's decline, pushing NAV into negative territory. The exchange halted trading following the NAV collapse.

GraniteShares Confirms Zero Assets Remain for Investors

GraniteShares stated that LCDL's NAV stood at -$0.016 per share, leaving no assets available for distribution to investors upon liquidation. Trading remains suspended until official delisting and liquidation procedures complete. The asset manager noted that all investors will receive zero recovery from the fund's closure.

Prospectus Disclosed 50% Drop Risk and Swap Termination Rights

GraniteShares clarified that the risk was disclosed in the fund's prospectus. The document stated: "If the underlying stock declines more than 50% in a single day, the leveraged ETF may incur losses exceeding net assets, and the swap counterparty may immediately terminate the swap transaction." The prospectus language covered the scenario that occurred on the 14th and 15th.

FAQ

What caused the GraniteShares LCDL ETF to delist?
The ETF delisted after Lucid Motors stocks dropped over 50% on the 14th, triggering swap counterparty liquidation that drove NAV to -$0.016 per share on the 15th.

Why did investors receive zero assets from the LCDL liquidation?
The fund's 2x leverage structure amplified losses from Lucid's 50%+ decline, turning NAV negative and leaving no remaining assets for distribution after swap position liquidation.