MSTX Becomes First Single-Stock Leveraged ETF For MicroStrategy Stock, Offers 175% Exposure

Defiance ETFs has launched MSTX, the first single-stock leveraged ETF for MicroStrategy MSTR in the United States.

What Happened: The fund, which began trading on Aug. 15, aims to provide investors with 175% daily targeted exposure to MicroStrategy’s stock performance.

MicroStrategy, a business intelligence firm, has gained prominence in recent years for its substantial Bitcoin BTC/USD holdings.

As of the end of Q1 2024, the company reported owning approximately 214,400 Bitcoin, valued at around $15.22 billion.

Emphasizing the unique opportunity presented by MSTX, Sylvia Jablonski, CEO of Defiance ETFs said, “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.”

Also Read: Bitcoin Could Be At $20,000 In This Market, ETFs Are ‘A Godsend,’ Analyst Says

The launch of MSTX comes at a time of increasing interest in cryptocurrency-related investment products.

It allows investors to gain leveraged exposure to MicroStrategy’s stock without the need for a margin account, potentially amplifying returns – and risks – tied to Bitcoin’s performance.

However, Defiance ETFs has issued a clear warning that MSTX is designed for sophisticated investors who actively monitor and manage their portfolios.

The fund’s leveraged nature magnifies the performance of its underlying security, making it riskier than non-leveraged alternatives.

What’s Next: The launch of MSTX comes just ahead of Benzinga’s Future of Digital Assets event on Nov. 19, where industry leaders are expected to discuss the latest trends and innovations in the cryptocurrency and blockchain space.

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