The prospectus for the VXX states that the final date of the fund will be January 29, 2019. Barclays Bank iPath S&P 500 VIX Short Term Futures (VXX:NYSE Arca) is a popular fund that is based on VIX index futures and has over $1 billion in assets. We would normally expect Barclays Bank to amend the prospectus and for the fund to continue trading after January 2019. We would not expect VXX to actually stop trading on January 29, 2019.
However, there are several indications that VXX will shut down. The CBOE initially listed options with a January 2020 expiration. But, very soon the options were withdrawn. There are no options on VXX for January 2020. We believe that the CBOE is simply obeying what the VXX prospectus says.
At the urging of several active traders, Charles Schwab Inc asked Barclays Bank whether VXX will continue after January 2019. There has been no answer from Barclays.
January 2019 is only 13 months away.
We urge Barclays to extend VXX to 2020 and beyond.
We ask that Barclays clarify the situation.
If VXX is shutting down, we urge another company to step in and create a fund just like VXX.
Disclosure: I am/we are long VMIN, VXX Puts.
Additional disclosure: I am a private investor, not associated with any financial company or service.