Dollar bulls swamped the dollar-bullish exchange traded fund ‘UUP’ on Friday.
WSJ: Strong demand for instruments that take bullish positions on the dollar prompted one such exchange-traded fund to be halted on Friday, after it ran out of shares.
“The fund issued all of the remaining shares to its authorised participants,” said DB Commodity Services, which offers the ETF, in a Securities and Exchange Commission filing. The PowerShares DB U.S. Dollar Index Bullish Fund is often referred to by its symbol, UUP.
DB Commodity Services, which offers the U.S. Dollar Index Bullish Fund, said in a prepared statement Friday that it filed on Dec. 8 to create 240 million additional shares of UUP “to manage exceptional investor demand.”
The surprising thing is that UUP hasn’t even rallied that much yet. These investors must be expecting a massive dollar move ahead, given how frenzied they have become. Check out the huge spike in volume since October::