Stalled Barclays VIX Note Finally Unfreezes After Bizarre Error

A now-infamous $578 million exchange-traded note from Barclays Plc is functioning as normal, more than six months after an embarrassing error by the British bank brought sales and issuance of the product to a shuddering halt.

Issuer Barclays is once again creating new shares this week in the iPath Series B S&P 500 VIX Short-Term Futures ETN (ticker VXX), which bets on stock volatility, in addition to five other vehicles, according to a statement on the bank’s website.

The US-listed note, which at one point last year commanded about $1.8 billion in assets, has subsequently added $22.6 million ...