The first micro-strategy ETF used was launched in the US
The first Bitcoin-linked exchange-traded fund (ETF) has been launched in the United States, another significant development for institutional crypto adoption.
The newly leveraged MicroStrategy ETF (MSTX) seeks to deliver 175% long daily to Target MicroStrategy (MSTR).
In the year In an August 15 announcement, Defense ETFs CEO Sylvia Jablonski said the ETF could help provide more leveraged exposure to Bitcoin (BTC):
“We are increasing the potential for investors seeking long-term exposure to Bitcoin. Given the micro strategy's high beta compared to Bitcoin, MSTX offers investors a unique opportunity to maximize their exposure to the Bitcoin market within an ETF portfolio.”
ETF revenues contribute significantly to cryptocurrency price appreciation. ETFs accounted for about 75% of new investment in the cryptocurrency on February 15, with a $50,000-plus surge.
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MicroStrategy Outperforms S&P 500 499 Out of 500: Saylor
MicroStrategy is one of the first publicly traded companies to hold Bitcoin on its balance sheet.
The firm outperforms 99% of the firms in the S&P 500 index, according to Michael Saylor, founder of MicroStrategy, in an August 11 post.
“Four years ago today, MicroStrategy adopted #Bitcoin as its primary treasury asset. Since then, $MSTR has outperformed 499 of the 500 stocks in the S&P 500.”
The newly leveraged ETF is likely to generate interest among investors due to the attractive price performance of the microstrategy stock, which has outperformed Bitcoin in recent months.
In the last six months, MSTR shares have increased by more than 70%, while the price of Bitcoin has risen only 13%, according to Bitstamp data.
Related: Brazil to launch world's first Solana ETF ahead of global markets
The MSTX ETF is targeting “sophisticated investors”.
Due to the risky nature of the investments used, the fund is not targeted at retail. But more sophisticated investors, according to Defiance's announcement:
“The fund is not suitable for all investors. The fund is intended for use only by sophisticated investors, such as traders and active investors who use dynamic strategies.
According to Eric Balchunas, senior ETF analyst at Bloomberg, who wrote in an August 14 X post, the ETF may actually be the most volatile ETF in the US.
“With the US market (equivalent to 13x SPY) beating $MSOX (2x weed), it will be the most volatile ETF you'll ever get in the hot sauce war.
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