However, some institutional managers are becoming leery about the fund’s rapid rise and whether it meets their needs at this price. Matt Papazian, chief investment officer at Cardan Capital Partners, uses the ETF to offset his firm’s equity position, but moved some of his hedge to another product at the beginning of the year -- and may cut further.
“We want to have exposure to these things at all times, we’re still there,” said Papazian, whose Denver-based firm manages around $530 million. “At this rate, we would probably reduce it again because the valuation is slowly but surely being eroded by this rapid increase.”