🌎 Leveraged MicroStrategy ETF MSTU Hits Record High, Gains $82M

A new leveraged MicroStrategy ETF is gaining significant traction as its assets surge and its stock reaches a record high.

Strong Start for T-REX 2X Long MSTR Daily Target ETF

The T-REX 2X Long MSTR Daily Target ETF, with the ticker MSTU, has added over $82 million in assets within just a week of its launch. According to Eric Balchunas, Bloomberg’s head of ETFs, these inflows rank it among the top twenty of all 515 funds launched this year.

MSTU has outperformed the Defiance Daily Target 1.75X Long MSTR ETF, which launched in August. This rapid growth is notable, as MSTU’s stock surged to a record high of $44 on Friday, Sept. 27, marking an 81% increase from its opening price. This makes it one of Wall Street’s best-performing assets. In comparison, MicroStrategy stock has risen by 35% over the same period.

Performance and Comparison

MSTU is designed to achieve 200% of the daily performance of MicroStrategy stock. For instance, when MicroStrategy shares rose by 6.6% on a recent Friday, the MSTU fund jumped by 13%. Historically, leveraged funds like MSTU perform well when their underlying asset is in an uptrend.

An example of this trend is the ProShares UltraPro ETF, a leveraged fund tracking the Nasdaq 100 index, which has risen by 373% over the last five years. Conversely, the ProShares UltraPro Short QQQ has dropped by 98.8% within the same period.

MicroStrategy and Bitcoin

Both MSTU and MSTX funds have benefited from MicroStrategy’s rebound during the ongoing Bitcoin bull run. Bitcoin recently rose to $66,000 for the first time in two months, continuing an upward trend that began earlier this month.

MicroStrategy shares often outperform Bitcoin due to the company’s substantial holdings. Over the last 12 months, MicroStrategy stock has risen by 457%, whereas Bitcoin has jumped by 151%. Recently, the company purchased additional coins worth over $458 million, bringing its total holdings to 252,220 Bitcoins valued at $16.7 billion.

Market Outlook

Many analysts believe Bitcoin will continue to rise, driven by potential Federal Reserve interest rate cuts ahead of the upcoming U.S. general election and the release of Changpeng Zhao from prison. Additionally, whales have continued to accumulate Bitcoin while exchange balances have dropped to their lowest point this year. Notably, Blackrock has added 5,894 Bitcoins in the last three days.