The basic speculation is that BTO would be pulled from the GDXJ. If the selling isn't done yet, then it could create one final capitulation, with 44M shares coming on the market. If you look back at how smoothly this stock has been walked down recently, I think some of this selling might have been engineered already.
Anyone have a more detailed version of the rumour to share? With the CGA merger, I thought they might reduce the weighting as it has become a much larger part of the fund ... too big you might say. I don't know if their logic for their company weightings is based on market-cap, in which case it wouldn't matter as CGA was in there too.
My guess was that we'd see either a reduction of the position in GDXJ, or a move up to the GDX. I don't think I saw anyone suggest that here, though I would expect many of us are thinking it. I think both funds are run by Van Eck (sp?), so would they really sell out of one fund into the market, and then buy back into another fund, or just make some kind of transfer. I guess they have that challenge of matching the shares owned in the ETF, versus the number of shares of the ETF outstanding and owned by the public, which could make transfers really tricky.