GraniteShares Delists 2x Long Lucid ETF After NAV Hits Negative Territory

Key Facts

In a move highlighting the high risks of derivative products tied to the electric vehicle sector, GraniteShares Advisors has announced the delisting of its LCDL ETF from the NASDAQ exchange. This decision follows the fund's net asset value (NAV) falling into negative territory, effectively wiping out its entire financial position. According to reports, extreme downward price action in Lucid Group (LCID) shares triggered losses in the 2x leveraged daily ETF that exceeded its total asset value.

This collapse occurs as the EV sector faces broad selling pressure, with companies like Rivian and Lucid struggling to maintain production levels and profitability amid an intense price war. Looking at peer performance, sector stocks have experienced significant declines over recent months, making leveraged funds highly susceptible to rapid liquidation during volatile swings. The delisting of LCDL serves as a stark reminder of the risks inherent in single-stock leveraged ETFs targeting high-beta equities, per market data.

Technically, the fund's delisting reflects peak pessimism toward Lucid shares, though it represents a failure of the derivative product structure rather than direct corporate insolvency. Investors should monitor the FOMC Minutes scheduled for July 8, 2026, as monetary policy signals could impact risk appetite in the growth and tech sectors. In the absence of updated pricing data for the instrument, the outlook for leveraged tools tied to this sector remains highly cautious.