Leverage Shares has introduced the first leveraged and inverse exchange-traded products (ETPs) linked to the performance of MicroStrategy stock. These innovative investment products are now available on the London Stock Exchange and include the 3x Long MicroStrategy exchange-traded product (ticker symbol ‘$MST3’) and the 3x Short MicroStrategy exchange-traded product (ticker symbol ‘$MSTS’).

Understanding Leveraged and Inverse ETPs

For investors new to ETPs, these financial instruments track the performance of specific assets, such as stocks. In this case, the asset is MicroStrategy’s stock. The 3x long exchange-traded product allows investors to triple the gains (or losses) of MicroStrategy’s stock. Conversely, the -3x short exchange-traded product lets investors profit if the stock’s value falls, offering triple leverage.

MicroStrategy’s Bitcoin Holdings

MicroStrategy is widely recognized for its substantial Bitcoin holdings. On September 20, the company announced it had acquired an additional 7,420 Bitcoin for over $458 million, at an average price of $61,750 per Bitcoin. This purchase brought their total holdings to 252,220 Bitcoin. The company also reported a total Bitcoin yield of 5.1% quarter-to-date and 17.8% year-to-date.

Indirect Bitcoin Trading

This initiative by Leverage Shares provides investors with a way to leverage their outlook on Bitcoin indirectly by investing in these ETPs tied to MicroStrategy’s performance. According to Leverage Shares’ Director of Strategy and Communications, Oktay Kavrak, this launch enables traders to “leverage their cryptocurrency outlook efficiently,” either to amplify potential returns or to hedge against market volatility.

Access to Highly Volatile Investments

Euronext, a European stock exchange group, provides the benchmark indices for these products. These ETPs introduce a new method for European investors to access the highly volatile world of cryptocurrency-related investments. Notably, these products could be 18-20 times more volatile than standard market indexes like the S&P 500.

For more cryptocurrency news and updates, explore more articles on Global Crypto News.

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