U.S. Oil Fund ETF Receives Green Light To Issue More Shares

#Lifestyle Wealth


(Bloomberg) -- The U.S. Oil Fund received approval from the U.S. Securities and Exchange Commission to issue 1 billion new shares, it said in a filing, paving the way for renewed investments into the popular retail product that’s been the center of controversy in recent months.

The approval comes nearly 8 weeks after the largest oil ETF said that it issued all remaining registered shares, a move driven by tremendous interest in the sector as crude prices plunged into negative territory for the first time in history. In that period, it’s been subject to limits from the world’s biggest oil exchanges, had to find new brokers and even found itself the subject of regulatory investigations.

The $4.9 billion ETF, known by its ticker USO, came under close scrutiny as oil’s rapid plunge forced it to rapidly shift some of its giant positions on short notice. While West Texas Intermediate crude is down about 40% so far this year, USO has lost around 70% of its value. Both the SEC and the Commodity Futures Trading Commission have opened probes into USO, people familiar with the matter said late last month, examining whether its risks were properly disclosed.

While its ability to accept new money has been halted, United States Commodity Funds, which runs USO, has been actively signing agreements with new brokers, including Marex Spectron and ED&F Man. The moves supplement an existing agreement with RBC Capital Markets, whose risk mitigation measures had stopped the fund from being able to buy more futures.

Throughout April and May, the ETF roiled oil prices after receiving record inflows from retail investors trying to call the bottom in crude’s rout. Its position in the June WTI contract at one point grew to represent 30% of the total open interest, worrying some about its outsized impact on the market.

The growing scale prompted CME Group Inc., the exchange, to instruct it to limit its positions, forcing it to move its holdings out to different contracts for delivery as far in the future as June 2021.

To contact the reporters on this story:
Catherine Ngai in New York at [email protected];
Alex Longley in London at [email protected]

PropellerAds

To contact the editors responsible for this story:
Pratish Narayanan at [email protected]
Stephen Cunningham, Mike Jeffers

https://www.wealthmanagement.com/etfs/us-oil-fund-etf-receives-green-light-issue-more-shares

To Find More Information, Go To Saubio Digital And Look Up Any Topic

Please follow and like us: Share This Post


Take a look at our comprehensive guide to the best and most popular information ebooks and products available today on Detoxing, Colon Cleansing, Weight Loss and Dating and Romance. They are all in one spot, easy to find and compere to make a quick selection for the product that best fits your needs or wants.

So browse through a category and make your  preferred selection and come back here to read  more choice articles and get a few more helpful tips on ways to help your enhancement.



Detoxing Reviews

Best Body Detoxification Guides & reviews





Colon Cleanse Reviews

Best Colon Cleanse Guides & Reviews





Weight Loss Ebook Reviews

Weight loss products really work! Click here





Dating and Romance Ebook Reviews

Looking for Dating Guides? Click here





Free Traffic System - Increase Targeted Website Traffic with Free Unlimited One Way Links

As an Amazon Associate I earn from qualifying purchases. “saubiosaubiosuccess.com is a participant in third party affiliate and advertising programs; The Amazon Services LLC Associates Program, and other affiliate advertising programs are designed to provide a means for sites to earn advertising fees and commissions by advertising and linking to products on other sites and on Amazon.com. Amazon and the Amazon logo are trademarks of Amazon.com, Inc, or its affiliates.”

Leave a Reply

Your email address will not be published. Required fields are marked *


Saubio's Guide & Tools

As an Amazon Associate I earn from qualifying purchases. “saubiosaubiosuccess.com is a participant in third party affiliate and advertising programs; The Amazon Services LLC Associates Program, and other affiliate advertising programs are designed to provide a means for sites to earn advertising fees and commissions by advertising and linking to products on other sites and on Amazon.com. Amazon and the Amazon logo are trademarks of Amazon.com, Inc, or its affiliates.”