Degens Are Searching for Further Leverage on MicroStrategy and Winning Massively

As an analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market trends and fads come and go. However, the surge in MicroStrategy-related ETFs this year has been nothing short of extraordinary.

Two exchange-traded funds (ETFs) associated with MicroStrategy (MSTR) have been launched this year. One of them is the Defiance Daily Target 1.75X Long MSTR ETF (MSTX), which debuted on August 15. This fund originally pledged to give investors a daily return that was 1.75 times the percentage change in MicroStrategy’s stock price. In just 2.5 months, it delivered a massive 176% return, leading its issuer to increase the leverage to 2x and change the name of the fund.

As an analyst, I observed that our product’s growth reached a parallel with the T-REX 2X Long MSTR Daily Target ETF (MSTU), which commenced trading a month later, on September 18. Remarkably, the ETF exceeded its expectations, delivering returns of a staggering 235%. In contrast, MSTR, during the same period, recorded a gain of 87%.

Eric Blachunas, a senior analyst at Bloomberg ETF, remarked about the T-Rex 2x Microstrategy ETF MSTU, which debuted just six weeks ago. The fund has already seen a staggering increase of 225% (equivalent to an annual return of 57,000%) and trades at half a billion dollars in volume, placing it among the top 1% of all ETFs. He found it amusing that there have been 3x MSTR ETFs available in Europe for some time but with little interest or assets traded. Blachunas suggested that this lack of interest is because such high volatility isn’t appealing to most investors in Europe. However, in the U.S., he noted that if an investment is made volatile, it will attract a crowd, as Americans seem drawn to high-risk, high-reward opportunities.

As a crypto investor, I’ve found MicroStrategy, led by executive chairman Michael Saylor, to be one of the standout stories in 2024. The company has provided a unique opportunity for investors like me to get involved with bitcoin (BTC) indirectly, without having to directly purchase the digital asset ourselves.