NEW YORK, Friday, August 30, 2024 – The newly launched MicroStrategy leveraged ETF, trading under the ticker $MSTX, has quickly amassed $127 million in assets just six days after its debut.
The exchange-traded fund (ETF), designed to deliver 175% of MicroStrategy’s daily stock return, is gaining significant traction among investors, with daily trading volumes surpassing $100 million, according to Eric Balchunas, a senior ETF analyst at Bloomberg.
Since its launch, the $MSTX ETF has attracted strong interest, particularly from those seeking amplified exposure to Bitcoin through MicroStrategy, which is widely considered a proxy for the cryptocurrency.
Issued by Defiance ETFs, the fund has seen its value fluctuate sharply, reflecting the inherent volatility of both MicroStrategy’s stock and Bitcoin.
On August 23, the ETF experienced a 20% surge, following a volatile week that included a 10% decline just the day before. Balchunas likened the ETF to a “mechanical bull,” highlighting its potential for significant short-term gains and losses, making it a compelling option for risk-tolerant investors.
MicroStrategy, known as one of the largest corporate holders of Bitcoin, has been a key player in integrating cryptocurrency into traditional financial markets.
Recently, the company announced plans to raise $2 billion through the sale of its Class A shares to further invest in Bitcoin and repay debt.
This comes on the heels of its Q2 financial report, where the company revealed it had acquired an additional 12,222 Bitcoin at a total cost of over $805 million, bringing its total holdings to 226,500 BTC.
Institutional interest in MicroStrategy is also on the rise, with South Korea’s National Pension Service investing $33.75 million in 24,500 shares of the company. Other major funds, including Japan’s GPIF and Michigan’s Retirement System, have also participated through ETFs, signaling a cautious yet growing acceptance of Bitcoin in traditional investment portfolios.
