CONL Lost 67% Year to Date While Coinbase Fell 33%, Exposing the Volatility Tax in Daily-Reset Leverage

The GraniteShares 2x Long COIN Daily ETF (CONL) lost 14% on June 5, 2026, closing at $4.80 after opening at $5.61, following a 7% drop in Coinbase (COIN), which fell from $164.13 to $152.40. CONL’s structure delivers two times the daily return of COIN before fees, but the fund’s gross and net expense ratio of 1.10% compounds aggressively over time. Over the past month, CONL has fallen 44% from $7.50 to $4.80, while COIN dropped 23%. Year-to-date, CONL is down 67% from $14.65, compared to COIN’s 33% decline, illustrating the volatility-decay tax in daily-reset leverage funds. The mechanism rebalances every afternoon, meaning losses compound asymmetrically during sustained downturns. Friday’s selloff was triggered by a macro data release: the May payrolls report exceeded expectations, lifting the 2-year Treasury yield to a 16-month high and pressuring risk assets. Bitcoin dropped 17% over the week and 23% over the month, falling to $61,282 on June 6 from $80,005 on May 7. Coinbase’s revenue depends on crypto market dynamics, including transaction volumes, stablecoin economics, and retail engagement. Q1 2026 revenue fell 30.5% year-over-year to $1.41 billion, missing estimates and reporting a GAAP loss per share of $1.49. Management attributed the decline to a 20%+ drop in crypto market cap and trading volumes. The disparity between CONL and COIN underscores how daily-reset leverage amplifies losses in choppy markets. While CONL is designed to deliver 2x daily returns, sustained declines erode value far beyond expectations, exposing investors to significant downside risk.