Wall Street Bets has filed for an anti-Citrion ETF, which aims to hold equity in companies shorted by the short seller. The latest ETF filing comes amidst the short squeeze by retail traders from wall Street bets on Friday.
Earlier in the week Citron Research had earlier in the week issued a damning report about the video game retailer. However, retail investors rebelled against the short sell company and bought more shares. This forced hedge funds that shorted the stock to cover, thus boosting the rally. Shares of game stop have soared 150% since the report from Citron.
Investors from the Redditt forum are worried about the manipulation of short sellers who connive with hedge funds and institutional investors to mislead the public on the true valuation of stocks.
It would be recalled that Citron Research released reports on Enphase and SolarEdge in 2019, accusing them of trading at significantly inflated multiples. Though both stocks slid, they have since posted bumper returns for their investors.
Wall Street Bets decided to file for an anti-citron ETF since the securities and exchange commission is slow in reining in the excesses of the short sell company. Underwriters for the ETF include Goldman Sachs and JP Morgan.
It is believed that the ETF would provide investors to exposure to the anti-short industry, a booming sector among Tiktok investors.