Update On The Leveraged Coinbase ETF CONL

Summary Bitcoin and Ethereum have moved into short-term bullish trends. COIN shares have followed the leading cryptocurrencies. Several factors support another boom period for the asset class. Lots of upside room for COIN shares. CONL is a liquid leveraged ETF that turbocharges COIN on the upside. Bitcoin (BTC-USD) experienced its latest correction from October 2025 through February 2026, losing more than half its value. Since the February low, Bitcoin has made higher lows and higher highs, signaling that another boom period could be on the horizon. Bitcoin is not a leveraged asset, but its price action has been unprecedented. Coinbase ( COIN ) is the leading U.S. cryptocurrency trading platform. COIN shares have correlated with Bitcoin and other cryptocurrency prices, as booms have driven more participation and busts have curtailed activity. The GraniteShares 2x Long COIN Daily ETF ( CONL ) is a leveraged ETF that delivers twice the daily percentage change in COIN shares. CONL is leveraged on a stock that already experiences substantial price volatility. I last wrote about CONL on Seeking Alpha on October 20, 2025 , after Bitcoin and COIN reached highs, highlighting its significant risks. I concluded with the following: Leverage comes at a price, as the gearing created by options and swaps experience time decay. Therefore, when COIN shares move lower, CONL will experience a greater percentage loss. Moreover, stability in COIN shares will result in losses for CONL as time decay will erode its value. With the most recent bust period in the rearview mirror, another boom period could make CONL a valuable trading tool. Bitcoin and Ethereum have moved into short-term bullish trends After substantial corrections, Bitcoin and Ethereum (ETH-USD) have moved into short-term bullish trends. Monthly Chart of Bitcoin versus the U.S. Dollar (Barchart) Bitcoin plunged 52% from the record high of $126,184.05 in October 2025 to $60,514.55 per token in February 2026. The monthly chart shows that it has made higher lows and higher highs through May 2026. Monthly Chart of Ethereum versus the U.S. Dollar (Barchart) Ethereum dropped 64.6% from the record high of $4,953.929 in August 2025 to $1,754.452 per token in February 2026. The monthly chart shows that it has made higher lows through May 2026. Bitcoin and Ethereum dominate the cryptocurrency asset class, accounting for over 70% of its total market capitalization. COIN shares have followed the leading cryptocurrencies Shares of the leading U.S. cryptocurrency platform, Coinbase, have followed a similar path to that of the two leading cryptocurrencies. Monthly Chart of COIN Shares (Barchart) COIN plunged 68.7% from the record high of $444.64 in July 2025 to $139.36 per share in February 2026. The monthly chart shows that it has made higher lows through May 2026. COIN was more volatile than Bitcoin or Ethereum during the cryptocurrency price plunge, as its shares fell by a larger percentage. Activity in the asset class declined during the price corrections, resulting in lower activity on the leading U.S. cryptocurrency platform. The factors supporting another boom period for the asset class With Bitcoin, Ethereum, and COIN making higher lows since February 2026, the following factors support another boom period for the cryptocurrency asset class: The trend since the February 2026 lows is bullish. The latest cryptocurrency bust found a bottom, which could lead to another boom. Each correction that found a bottom and turned bullish has led to a new record high in Bitcoin. The U.S. administration has supported cryptocurrencies through policy initiatives such as the GENIUS Act. A growing number of financial institutions have allowed clients to own cryptocurrencies, crypto-related assets, and shares, expanding the addressable market. The growing number of cryptocurrency ETFs has expanded the asset class’s addressable market. A bullish trend will attract more buyers and activity. These compelling factors support another cryptocurrency boom period and higher prices from the current levels. However, cryptocurrencies continue to have opponents who believe that they have no intrinsic value and have numerous nefarious applications. Moreover, continued growth of the asset class could interfere with the government's control of the money supply, prompting tighter regulations and even curtailment of activity. Lots of upside room for COIN shares It was only ten months ago when COIN shares reached their all-time high of $444.64. Weekly Chart of COIN (Barchart) The weekly chart shows that at around $200 per share, COIN is less than half the price at the July 2025 record high. Moreover, COIN has plenty of room to recover from its current level. The first technical target is the January 2026 high of $263.07. Above there, the next upside hurdle is the December 2025 high of $284.74, which is over 30% above the current price. Above there, the late October 2025 high of $373.25 and the early October 2025 high of $402.16 per share are technical resistance levels and could be a gateway to challenging the July 2025 record high of $444.64 per share. The bottom line, from a technical perspective, is that Bitcoin, Ethereum, and COIN shares have plenty of upside potential at current prices. If another boom period is on the horizon, now could be the perfect time to dip a toe in the asset class on the long side. CONL is a liquid leveraged ETF that turbocharges COIN on the upside Cryptocurrencies and COIN are highly volatile assets that have experienced boom-and-bust price action over the past few years. While they are not leveraged assets, they certainly experience massive percentage moves. As noted earlier, the GraniteShares 2x Long COIN Daily ETF is a leveraged ETF that delivers twice the daily percentage change in COIN shares. At $8.69 per share, CONL had over $722 million in assets under management. CONL trades an average of more than 20.7 million shares per day and charges a 1.10% management fee. CONL’s fund profile states: Fund Profile for the CONL Leveraged ETF (Seeking Alpha) The most recent short-term rally in COIN shares took the shares 23% higher, from $177.62 on April 29 to $218.46 on May 12, 2026. Daily Chart of the Leveraged CONL ETF (Barchart) Over the same period, CONL shares rose 48.7%, from $6.94 to $10.32 per share, delivering over twice the percentage gain over two weeks. CONL Seeking Alpha ETF Grades (Seeking Alpha) CONL’s Seeking Alpha ETF grades are failing in all categories except for liquidity, as the assets under management and daily trading volumes earn CONL the highest possible A+ grade. If cryptocurrencies are in the early days of another boom, COIN will attract buyers. A rally in COIN will support the leveraged CONL ETF, which is likely to outperform COIN on a percentage basis. The CONL ETF amounts to a COIN share on steroids. However, the leverage comes at a price: time decay. Therefore, CONL is only appropriate for short-term risk positions on the long side of COIN shares. Any position in CONL requires careful attention to risk-reward dynamics, including a plan for stops and profit horizons, as the gearing can lead to oversized losses. Moreover, COIN share prices will cause CONL to decline as time decay erodes its value. Swaps and options that create leverage dramatically increase risks. The SEC website highlights the significant risks associated with leveraged ETFs, such as CONL. Leverage requires planning. While it is appropriate to increase profit horizons when CONL moves in the anticipated direction, adjusting stop levels will protect profits and capital. When CONL moves contrary to expectations, sticking to stop levels will protect capital and limit losses. Another risk is that while cryptocurrencies trade around the clock, COIN and CONL trade only during U.S. stock market hours. Therefore, COIN and CONL can miss highs or lows in the asset class that occur during off-hours. I rate CONL a buy in the current environment, as it is a trading tool, not an investment. I favor CONL, as there is a compelling case for another boom period in cryptocurrencies, which would take COIN shares higher. However, any strategy involving CONL entails accepting small losses from stops in pursuit of oversized profits when the COIN rallies.