The newly launched MicroStrategy leveraged ETF, trading under the ticker $MSTX, is rapidly gaining traction on Wall Street.
The MSTX ETF has amassed $127 million in assets within just six days of its debut, said Eric Balchunas, senior ETF Analyst for Bloomberg.
The ETF, which seeks to deliver 175% of MicroStrategy’s daily stock return, has been trading at over $100 million in volume per day, showing strong investor interest in MicroStrategy and Bitcoin (BTC).
On August 23, the ETF surged by 20% after a volatile week that included a 10% decline the previous day. Due to its high volatility and potential for significant short-term gains and losses, Balchunas described the ETF as the “mechanical bull” of ETFs.
Issued by Defiance ETFs, known for its thematic and leveraged funds, $MSTX allows investors to amplify their exposure to Bitcoin, as MicroStrategy’s stock is widely viewed as a proxy for the cryptocurrency.
MicroStrategy’s goals
MicroStrategy is one of the largest corporate holders of Bitcoin. The company recently announced plans to raise $2 billion by selling its class A shares to further invest in Bitcoin and repay debt.
In its Q2 financial results, MicroStrategy reported acquiring 12,222 Bitcoin at a total cost of over $805 million, bringing its total Bitcoin holdings to 226,500.
South Korea’s National Pension Service has invested $33.75 million in 24,500 shares of MicroStrategy, and other funds like Japan’s GPIF and Michigan’s Retirement System are also participating through ETFs. This growing institutional interest suggests a cautious but notable shift towards integrating Bitcoin into traditional investment portfolios.