US Debuts First Leveraged MicroStrategy ETF to Amplify Bitcoin Exposure
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The U.S. Securities and Exchange Commission (SEC) has approved the launch of the first leveraged single-stock exchange-traded fund (ETF) targeting MicroStrategy Incorporated.
Named MSTX, this groundbreaking ETF is set to offer investors enhanced exposure to Bitcoin, the digital asset that has become central to MicroStrategy’s corporate strategy.
According to Defiance ETFs, a firm known for its thematic and leveraged ETFs, the innovative MSTX is the first in the U.S. to combine leveraged investing with a focus on a single stock linked to Bitcoin, marking a new chapter in institutional crypto adoption.
Defiance ETFs is proud to unveil MSTX, the first single-stock long leveraged ETF for MicroStrategyhttps://t.co/0uwqp1Tcbt#MSTX #LeverageETFs pic.twitter.com/bGVoundwap
For more context, MSTX is a leveraged exchange-traded fund (LETF) designed to magnify the returns associated with MicroStrategy’s stock by employing financial derivatives and debt.
Unlike traditional ETFs that track their underlying assets on a one-to-one basis, LETFs aim to achieve a higher multiple of returns.
Specifically, MSTX seeks to deliver 175% of the daily return of MicroStrategy’s stock (MSTR).
In practical terms, if MicroStrategy’s stock experiences a 1% increase, MSTX is expected to rise by 1.75% and vice versa.
Sylvia Jablonski, CEO of Defiance ETFs, highlighted the unique opportunity presented by MSTX.
He said,
“Given MicroStrategy’s inherent higher beta than Bitcoin, MSTX offers a unique opportunity for investors to maximize their leverage exposure to the
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