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New U.S. ETF Provides 175% Leverage on MicroStrategy’s Bitcoin Holdings

New U.S. ETF Provides 175% Leverage on MicroStrategy’s Bitcoin Holdings

Cryptodnes2024/08/15 19:00
By:Cryptodnes

The U.S. has launched its first Bitcoin-related leveraged ETF, the MicroStrategy ETF (MSTX), which offers investors 175% daily leveraged exposure to MicroStrategy.

This development is a notable step in institutional crypto adoption.

The MSTX ETF provides a way to amplify Bitcoin exposure through MicroStrategy, a company known for its significant Bitcoin investments. Sylvia Jablonski, CEO of Defiance ETFs, emphasized that this fund targets investors seeking high leverage in the Bitcoin market.

The ETF comes as Bitcoin ETFs have increasingly influenced cryptocurrency investments, with these funds accounting for a significant portion of Bitcoin’s investment inflows.

READ MORE:
Top U.S. Bank Backs BlackRock’s Bitcoin ETF, Drops Grayscale Trust

MicroStrategy has outperformed most SP 500 companies since it made Bitcoin its primary treasury reserve, with its stock seeing substantial gains compared to Bitcoin’s modest rise.

The ETF is aimed at sophisticated investors due to its leveraged nature, and it is expected to be highly volatile. Bloomberg’s Eric Balchunas noted that it could become the most volatile ETF available in the U.S. market.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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