Some people say that the natural gas ETF (ticker: UNG) account for one-third to one-half of all gas contracts traded on the futures markets. And maybe this size is influencing the price of the futures.
Anyway, UNG was seeking regulatory approval to issue new shares and this request was rejected.
Since March the fund has grown sixfold.
This restriction could be set up an arbitrage opportunity.. Because if demand for UNG-shares remain high, this ETF can trade with a premium vis-à-vis the underlying asset.
Anyway, UNG was seeking regulatory approval to issue new shares and this request was rejected.
Since March the fund has grown sixfold.
This restriction could be set up an arbitrage opportunity.. Because if demand for UNG-shares remain high, this ETF can trade with a premium vis-à-vis the underlying asset.
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