[Exclusive] Gopbus Nickel ETN Ultimately Delisted "Not a Single Penny Can Be Held"... First Case with Base Index Dropped to Zero

[Asia Economy Reporter Lee Seon-ae] The nickel 2x inverse (multiply inverse) Exchange Traded Note (ETN), which recently had its trading suspended due to a surge in nickel prices causing the principal to be completely lost, will ultimately be delisted. This unprecedented situation occurred as the ETN's value dropped to zero. It is the first time in history that the underlying index it tracks ended at zero, resulting in a trading suspension and delisting at a benchmark price of zero, creating the 'first domestic ETN' to be delisted under such circumstances. Investors holding the nickel multiply inverse ETN will receive nothing.

On the 16th, the Korea Exchange ETN team stated, "To protect investors, we suspended trading of the ‘Daishin Inverse 2X Nickel Futures ETN (H)’ on the 8th, and since the benchmark value has become zero, delisting is inevitable," adding, "We plan to complete the delisting process within this week."

The underlying index of this ETN is the ‘S&P GSCI Nickel -2x Index (S&P GSCI Nickel 2X Inverse TR)’. It is a so-called ‘multiply inverse’ product that tracks twice the inverse of the daily price fluctuations of nickel futures. Since ETNs are designed to reflect the returns of the underlying assets directly in the ETN price, if the benchmark price hits zero, even if the commodity price falls afterward, the principal is considered a total loss. The benchmark value refers to the real value per ETN security, representing the amount investors will receive from the issuer upon maturity if held until then. A benchmark value of zero means the security no longer holds any value.

The Exchange announced that trading will remain suspended until the reason for the suspension is resolved, and after further confirmation regarding the underlying index handling by the index provider S&P, a decision on delisting will be made. Since the benchmark value cannot be restored, delisting was concluded. Consequently, investors have no choice but to lose their entire investment.

This content was produced with the assistance of AI translation services.