REX Shares and Tuttle Capital have partnered to launch two new exchange-traded funds providing the primary 2X leveraged and inverse publicity to shares of MicroStrategy.
The asset managers introduced the launch of the T-REX 2X Lengthy MSTR Every day Goal ETF and the T-REX 2X Inverse MSTR Every day Goal ETF on Sept. 18.
The brand new merchandise, which can observe the each day value of MicroStrategy’s inventory and supply publicity to the corporate’s Bitcoin (BTC) guess, will commerce beneath the MSTU and MSTZ ticker symbols on the CBOE.
First 2x leveraged & inverse MSTR ETFs
REX and Tuttle Capital’s lengthy and quick MicroStrategy ETFs enter the market following asset supervisor Defiance ETF’s 1.75x leveraged ETF based mostly on MicroStrategy, launched in August. The Defiance ETF noticed respectable quantity following its launch.
Nevertheless, MSTU and MSTZ could achieve extra consideration, given they’re the primary ETFs to supply 200% leveraged and -200% inverse publicity to MSTR inventory.
Bloomberg’s senior ETF analyst, Eric Balchunas, says the REX/Tuttle MSTR ETF merchandise will surpass Defiance ETF’s 1.75X MicroStrategy ETF. Whereas the Defiance product “has been an instant hit,” the 2 new entrants are set to ship volatility that might outpace that of SPX by 15x.
Based on Greg King, chief government officer of REX Shares’ father or mother firm REX Monetary, the 2X ETFs current a chance for merchants to discover new methods to have interaction with MicroStrategy’s Bitcoin technique. The corporate, which first purchased BTC in August 2020, is the most important company holder of the digital asset.
“The 2X Leveraged and 2X Inverse MSTR ETFs offer traders unparalleled access to MicroStrategy’s Bitcoin exposure, whether they’re looking to amplify potential gains or hedge against market volatility.”
Matt Tuttle, chief government officer of Tuttle Capital Administration
MicroStrategy’s inventory traded round $1.34 on Sept. 18 at 12:55 ET, with its value up 2.2% on the day and over 95% greater year-to-date.
In the meantime, BTC hovered close to $59,851 on the time of writing—largely unchanged over the previous 24 hours and up 35.4% year-to-date.
