Normal
At this point, USO and friends have definitely become the long side of the market.No because the ETF had already rolled to the next month contract long before prices went negative.Now that the dust has settled it is apparent the culprits were some doofuses on Interactive Brokers who held about 15% of the Open Interest, plus Bank of China who were abusing their "bonafide hedger" status at the exchange to sell structured products to their customers.Yes. If you listen to the podcast episode I suggested, you will see why this is about to become a huge problem, forget what we just saw.Other oil tracking ETFs, yes. Other commodity tracking ETFs which hold oil futs, maybe. Otherwise probably not many if any.
At this point, USO and friends have definitely become the long side of the market.
No because the ETF had already rolled to the next month contract long before prices went negative.
Now that the dust has settled it is apparent the culprits were some doofuses on Interactive Brokers who held about 15% of the Open Interest, plus Bank of China who were abusing their "bonafide hedger" status at the exchange to sell structured products to their customers.
Yes. If you listen to the podcast episode I suggested, you will see why this is about to become a huge problem, forget what we just saw.
Other oil tracking ETFs, yes. Other commodity tracking ETFs which hold oil futs, maybe. Otherwise probably not many if any.
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