Kevin Paffrath’s Meet Kevin Pricing Power ETF to Close After Risky Bets, Overextension
The Meet Kevin Pricing Power ETF (NYSE Arca: PP), managed by YouTuber Kevin Paffrath, will close and liquidate by February 28, 2025, Tidal Financial Group and Plato’s Philosophy LLC announced in a joint press release.
The decision, they wrote, “follows a thorough evaluation and was determined to be in the best interests of the fund and its shareholders.”
Launched in November 2022 with $500,000 in assets, the ETF initially performed well, due in part to Paffrath’s substantial YouTube following and bets on companies like Apple (Nasdaq: AAPL) and Tesla (Nasdaq: TSLA). However, the fund’s fortunes turned after Paffrath bet on falling interest rates following a September rate cut.
PP’s top holding became the Direxion Daily 20+ Year Treasury Bull 3X Shares, a high-risk fund aiming to provide outsized returns on bets on US Treasury Bonds. As interest rates climbed, Paffrath’s bets were crushed, leaving PP’s price unchanged over the past year compared to a 22% gain in the SPDR S&P 500 ETF Trust.
Paffrath admitted to overextending himself with real estate and other projects. “I took on too much,” he wrote on X.
He also cited interference from unnamed partners, claiming their rules prevented him from boosting bets on Tesla and executing trades as quickly as he would have liked. Paffrath reportedly lost a personal investment of around $1 million due to fees, lawyers, and other fund-related costs.
The ETF will cease trading on NYSE Arca at the close of regular trading on February 25, 2025, and will no longer accept purchase orders. Shareholders may sell their holdings through standard brokerage transactions before this date or to select broker-dealers until the February 28, 2025 liquidation date.
PP will distribute its remaining assets as cash pro rata to shareholders of record, which may result in taxable capital gains or losses.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
