VS Trust Reports Significant Revenue Growth and Investment Losses for Quarter Ending June 30, 2025

VS Trust reported its financial results for the quarter ending June 30, 2025, revealing significant changes in both revenue and net assets compared to the previous fiscal period. The Trust's total income for the quarter was $3.57 million, a substantial increase from $1.04 million in the same quarter of 2024. This growth was primarily driven by a rise in interest income, which reached $3.79 million for the six months ended June 30, 2025, compared to $1.64 million for the same period last year. However, the Trust also faced considerable losses from investments, with net realized and unrealized losses amounting to $101.65 million for the six months, leading to a net decrease in net assets of $31.18 million for the -1x Short VIX Futures ETF and $409.28 million for the 2x Long VIX Futures ETF.

The Trust's operational metrics showed notable fluctuations, particularly in its capital share transactions. For the three months ended June 30, 2025, the -1x Short VIX Futures ETF saw shares sold totaling approximately $777.86 million, while the 2x Long VIX Futures ETF reported $1.04 billion in shares sold. This reflects a significant increase in trading activity compared to the previous year, where the -1x Short VIX Futures ETF had $146.78 million in shares sold and the 2x Long VIX Futures ETF had $100.53 million. The total net assets for the -1x Short VIX Futures ETF decreased to $268.95 million, while the 2x Long VIX Futures ETF increased to $596.99 million.

Strategically, VS Trust has maintained its focus on VIX futures contracts, which are central to its investment strategy. The Trust continues to operate under the guidance of its sponsor, Volatility Shares LLC, and has not reported any significant acquisitions or organizational changes during this period. The Trust's management has emphasized the importance of maintaining liquidity and capital resources, with a portion of net assets held in cash and high-quality short-term securities to collateralize derivatives positions.

Looking ahead, the Trust's management has expressed cautious optimism regarding market conditions, although they acknowledge the inherent risks associated with volatility in the VIX futures market. The Trust remains committed to its investment objectives, which include achieving daily investment results that correspond to the performance of the Short VIX Futures Index and the Long VIX Futures Index. However, the management has also highlighted the potential for significant losses due to market volatility and the complexities of compounding returns over time. As such, investors are advised to closely monitor their investments and the performance of the Trust's funds.