Leveraged MicroStrategy ETFs Are Surging as Bitcoin Nears All-Time High
Leveraged ETFs focused on MicroStrategy, the leading corporate holder of Bitcoin, are gaining popularity as Bitcoin nears an all-time high. The ETF issuer Defiance has increased the leverage on its MicroStrategy ETFs to stay competitive with rival T-Rex, which recently launched a similar fund that has quickly attracted significant investment. Bitcoin was trading at $71,835, not far from its record price of $73,737 set in March, while MicroStrategy's stock reached a 25-year high above $266. The leveraged ETFs, such as MSTX, are designed to provide amplified exposure to the performance of MicroStrategy's stock and, by extension, Bitcoin. T-Rex's fund, MSTU, has grown to nearly $1 billion in assets under management in six weeks, showcasing investor interest in leveraging their positions amid rising market prices. Both funds involve substantial risk due to their high leverage, aligning with a trend among investors seeking out aggressive trading options at a time when Bitcoin's price is on an upward trajectory.
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