Kelvin Daminabo
In a notable advancement for investors, REX Shares and Tuttle Capital have teamed up to introduce two exchange-traded funds (ETFs) that provide 2X leveraged and inverse exposure to MicroStrategy’s shares. This initiative sets a new precedent in the market, enabling investors to benefit from MicroStrategy’s stock performance as well as its Bitcoin assets.
The newly launched ETFs, named T-REX 2X Long MSTR Daily Target ETF and T-REX 2X Inverse MSTR Daily Target ETF, will follow the daily pricing fluctuations of MicroStrategy’s stock. This presents investors with a chance to potentially earn from both the stock’s movements and its Bitcoin investments. The ETFs will be available for trading on the CBOE under the tickers MSTU and MSTZ.
The leveraged ETF aims to achieve double the daily returns of MicroStrategy’s stock, while the inverse ETF will seek to realize double the reverse of the daily returns. This format allows investors to enhance their potential profits or losses based on the stock’s price changes.
Recently, MicroStrategy’s Bitcoin investments have significantly influenced its stock value. With these ETFs, investors can gain indirect exposure to Bitcoin performance through MicroStrategy’s shares, which might appeal to those wary of investing directly in cryptocurrencies.
The introduction of these ETFs is a crucial milestone for the investment sector, providing fresh methods for accessing MicroStrategy’s stock and Bitcoin investments. This development could draw increased investor interest, thereby raising demand for both MicroStrategy’s shares and Bitcoin.
The arrival of the T-REX 2X Long MSTR Daily Target ETF and T-REX 2X Inverse MSTR Daily Target ETF signifies an exciting opportunity for investors. With the capacity to increase gains or losses, these ETFs open up a new avenue for engaging with MicroStrategy’s stock and its Bitcoin assets. As the market landscape shifts, it will be fascinating to observe the performance and investor reception of these products.
Enhancing Exposure: New 2X MSTR ETFs Unveiled
The introduction of REX and Tuttle Capital’s long and short MicroStrategy ETFs represents a significant evolution in the market, allowing investors to interact with both MicroStrategy’s stock and its Bitcoin holdings in innovative ways. These ETFs are the first to offer 200% leveraged and -200% inverse exposure to MSTR stock, appealing to traders looking to amplify their returns or manage risk effectively.
The release of these ETFs follows a similar product from Defiance ETF, which offered a 1.75x leveraged ETF centered on MicroStrategy in August. Although the Defiance ETF experienced modest trading activity, Bloomberg’s senior ETF analyst, Eric Balchunas, anticipates that the new REX/Tuttle MSTR ETFs will outdo it. He suggests these funds are poised to deliver volatility that could exceed SPX by 15-fold.
These 2X ETFs provide a new exploration avenue for traders interested in MicroStrategy’s Bitcoin strategies. As the leading institutional holder of Bitcoin, the company’s stock is reliably linked to the cryptocurrency’s performance. Since its initial Bitcoin purchase in August 2020, MicroStrategy’s stock has surged, trading at approximately $1.34 on September 18, marking a 2.2% increase for the day and over 95% growth for the year.
As of now, Bitcoin was positioned around $59,851, reflecting no significant change over the past 24 hours and showcasing a 35.4% increase year-to-date. The launch of these ETFs marks an important development in the sector, offering more ways for investors to capitalize on MicroStrategy’s stock and Bitcoin. This strategy could attract further investment, heightening demand for both MicroStrategy stock and Bitcoin.
Greg King, the chief executive officer of REX Shares’ parent company, REX Financial, expressed that the 2X ETFs present a distinct opportunity for traders to engage with MicroStrategy’s Bitcoin approach. “These ETFs offer investors a fresh avenue for accessing the performance of MicroStrategy’s stock and Bitcoin investments,” stated King. “We believe that these products will be appealing to traders looking to boost their returns or safeguard their investments.”