MicroStrategy 2X Leveraged ETF Sees Massive Inflows In First Week Of Trading As MSTR Outperforms Bitcoin

This fund, issued by REX Shares and Tuttle Capital Management, guarantees a double daily return that corresponds to the stock of MicroStrategy (MSTR), now known as a bitcoin strategy company after its status as a software mogul. It offers the highest level of leverage any MSTR-tied fund can provide.

An alternative fund, the Defiance Daily 1.75X Long MicroStrategy ETF (MSTX), aims to deliver traders gains that are 1.75 times greater than the daily price fluctuations of MSTR shares. MSTX debuted on August 15 and has amassed approximately $857 million, as per data from Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, placing it among the top 8% of new funds launched this year.

In his recent post on X, Balchunas stated that “Both possess strong liquidity.” He added that he initially thought there wasn’t enough space for both, especially given the quick pace, but this situation underscores the high demand for swiftness in the market.

MicroStrategy outperforms bitcoin and tech in current market rally

For the first time since July 31st, Bitcoin’s value has surpassed $66,000. On that date, MicroStrategy was valued at $168 per share; currently, it’s trading around $178, a rise of $10 per share. Since Bitcoin has remained relatively stable since then, this indicates that the recent rally is being driven by MicroStrategy rather than Bitcoin itself.

A notable shift has emerged between MicroStrategy and NVIDIA (NVDA). For the previous month, these assets moved in unison; however, since September 19th, MicroStrategy has continued to surge while NVIDIA has stagnated. This suggests that technology might not be the main factor fueling this market rally.