ETF issuer Defiance has launched MSTX, the first single-stock long-leveraged ETF for MicroStrategy, according to a press release issued on Thursday, August 15.
This innovative financial product aims to provide 175% long daily targeted exposure to the investment firm, which has become synonymous with Bitcoin holdings among public companies.
Sylvia Jablonski, CEO of Defiance ETFs, emphasized that this new offering is designed to amplify opportunities for investors seeking leveraged exposure to Bitcoin through MicroStrategy’s stock.
“Given MicroStrategy’s inherent higher beta compared to Bitcoin, MSTX offers a unique opportunity for investors to maximize their leverage exposure to the Bitcoin market within an ETF wrapper,”
Jablonski stated.
The ETF issuer cautioned that the Fund is not intended for passive investors, stating,
“Investors who do not understand the Funds, or do not intend to actively manage their funds and monitor their investments should not buy shares of the Funds.”
They added that the Fund is riskier than alternatives and is only suitable for a selected few—
“sophisticated investors, such as traders and active investors employing dynamic strategies.”
MicroStrategy has gained prominence in the cryptocurrency market due to its substantial Bitcoin holdings and its focus on becoming a leading Bitcoin asset manager globally. The company’s CEO, Michael Saylor, recently highlighted in a post on social media platform X that MicroStrategy has outperformed 99% of companies in the S&P 500 index since August 10, 2020, second only to Super Micro, which recorded a performance of 1,584% since then.
Meanwhile, the launch of this leveraged ETF comes on the heels of MicroStrategy’s strong second-quarter results for 2024 which was reported two weeks ago. As of June 30, the company held approximately 226,500 BTC, with a market value currently 70% above its cost basis.
The new MSTX ETF is likely to attract significant investor interest, given MicroStrategy’s recent stock performance. Data from Bitstamp shows that MSTR shares have grown by more than 70% during a period when Bitcoin’s price increased by only 13%.
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