Summary:
MSTU ETF attracts over $72 million in its first week.
MicroStrategy (MSTR) stock outperforms Bitcoin, trading at almost $178.
MSTX ETF has raised approximately $857 million, ranking in the top 8% of ETF launches this year.
MicroStrategy's stock is highly correlated with Bitcoin (BTC), holding 252,220 BTC.
Divergence noted as MicroStrategy rises while NVIDIA remains flat.
Seven days after its launch, the T-REX 2X Long MSTR Daily Target ETF (MSTU) has emerged as one of the most successful new ETFs, attracting over $72 million in investment. This fund, created by REX Shares and Tuttle Capital Management, aims to deliver twice the daily performance of MicroStrategy (MSTR), a company that has pivoted to a Bitcoin strategy.
Competing ETFs in the Market
A similar product, the Defiance Daily Target 1.75X Long MicroStrategy ETF (MSTX), which launched on August 15, has garnered approximately $857 million, placing it in the top 8% of ETF launches this year according to Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence. Balchunas noted both funds have robust liquidity, indicating a strong demand for leveraged exposure to MSTR.
MicroStrategy's Performance vs. Bitcoin
MicroStrategy has gained traction among traders seeking exposure to Bitcoin (BTC) without directly investing in the cryptocurrency. The company's stock is highly correlated with Bitcoin due to its substantial holdings of 252,220 BTC. Currently, Bitcoin's price has surpassed $66,000 for the first time since July 31, during which MicroStrategy's stock was priced at $168. Now trading at almost $178, MSTR's growth indicates it is leading the current market rally, even as Bitcoin has remained relatively flat.
Divergence from Tech Stocks
Interestingly, while MicroStrategy has surged, NVIDIA (NVDA) has stagnated since September 19, demonstrating that technology stocks are not the primary drivers of this rally. The divergence in performance suggests a shift in investor interest towards Bitcoin-related assets.
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