REX Shares and Tuttle Capital have introduced two new exchange-traded funds (ETFs) that provide the first 2X leveraged and inverse exposure to shares of MicroStrategy. The asset managers announced the launch of the T-REX 2X Long MSTR Daily Target ETF and the T-REX 2X Inverse MSTR Daily Target ETF on September 18. These new ETFs will track the daily price of MicroStrategy’s stock and offer exposure to the company’s Bitcoin strategy. The ETFs will trade under the ticker symbols MSTU and MSTZ on the CBOE.

First 2X Leveraged & Inverse MSTR ETFs

REX and Tuttle Capital’s long and short MicroStrategy ETFs follow the launch of Defiance ETF’s 1.75x leveraged ETF based on MicroStrategy, which debuted in August. The Defiance ETF experienced decent trading volume upon its release. However, MSTU and MSTZ may attract more attention as they are the first ETFs offering 200% leveraged and -200% inverse exposure to MicroStrategy stock.

Market Insights

Bloomberg’s senior ETF analyst, Eric Balchunas, anticipates that the REX/Tuttle MSTR ETF products will surpass Defiance ETF’s 1.75X MicroStrategy ETF. While the Defiance product has been well-received, the new REX/Tuttle ETFs are expected to deliver volatility that could exceed that of the SPX by 15 times.

Tuttle just re-broke the volatility barrier today with the launch of 2X and -2X $MSTR ETFs, which will leapfrog Defiance’s 1.75x MSTR. This will deliver volatility estimated to be about 15x that of SPX.

According to Greg King, CEO of REX Shares’ parent company REX Financial, the 2X ETFs offer traders an opportunity to explore new ways of engaging with MicroStrategy’s Bitcoin strategy. MicroStrategy, which first bought Bitcoin in August 2020, is the largest corporate holder of the digital asset.

Greg King, CEO of REX Financial: “The 2X Leveraged and 2X Inverse MSTR ETFs offer traders unparalleled access to MicroStrategy’s Bitcoin exposure, whether they’re looking to amplify potential gains or hedge against market volatility.”

Matt Tuttle, CEO of Tuttle Capital Management, echoed this sentiment, emphasizing the strategic advantages these ETFs provide for traders.

Current Market Performance

As of September 18 at 12:55 ET, MicroStrategy’s stock was trading around $1.34, with its price up 2.2% for the day and over 95% higher year-to-date. Meanwhile, Bitcoin was approximately $59,851 at the time of writing, remaining largely unchanged over the past 24 hours and up 35.4% year-to-date.

For more updates on the latest trends in cryptocurrency, investing, and finance, explore more news on Global Crypto News.

Post Views: 43