SquatchTrading
$XRPM I’ve been digging into XRPM’s daily holdings with GPT trying to figure out how they plan to keep NAV from getting destroyed when XRP makes a big run through weekly XRPC etf covered calls. Something interesting happened. On 9/30 they held 165,881 XRPC shares. On 10/1 that dropped to 87,000 and cash jumped to $1.397M. Today XRPC jumped to 210,300 shares and cash went negative $557K. Meanwhile the 8,008 synthetic long XRPC contracts AND 8,008 short XRPC $16.87 calls didn’t change. So they now have substantially more direct XRPC etf exposure outside that covered block. I’ve had a “rubber band” theory that they have to dynamically increase uncapped exposure, reduce calls, or move strikes as XRP runs or this thing mathematically gets killed by volatility. Maybe this is part of how they handle it. I’m watching the daily holdings now to see what they do as XRPC approaches the $16.87 strike.. stay tuned..
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