MicroStrategy 2X Leveraged ETF Sees Massive Inflows In First Week Of Trading As MSTR Outperforms Bitcoin

Seven
days
after
hitting
the
market,
the
T-REX
2X
Long
MSTR
Daily
Target
ETF
(MSTU)
has
become
one
of
the
most
successful
new
exchange-traded
funds
(ETFs)
on
the
market
after
attracting
over
$72
million.

The
fund,
issued
by
REX
Shares
and
Tuttle
Capital
Management,
promises
two
times
the
daily
performance
to
the
stock
of
MicroStrategy
(MSTR),
the
software
mogul
turned
bitcoin
strategy
company,
the
most
leverage
any
fund
tied
to
MSTR
gives.

A
similar
fund,
the
Defiance
Daily
Target
1.75X
Long
MicroStrategy
ETF
(MSTX),
promises
traders
returns
of
175%
of
the
daily
percentage
change
in
the
share
price
of
MSTR.
MSTX
went
live
on
Aug.
15
and
has
so
far
taken
in
roughly
$857
million,
according
to
data
from
Bloomberg
Intelligence
senior
ETF
analyst
Eric
Balchunas,
putting
it
in
the
top
8%
of
launches
this
year.

“Both
have
robust
liquidity,”
Balchunas
said
in
a
post
on
X.
“I
didn’t
think
there
was
room
for
both
(esp
so
quickly),
it
just
[shows]
how
much
‘need
for
speed’
there
is
out
there.”

MicroStrategy
has
been
an
attractive
investment
for
traders
looking
to
gain
exposure
to
bitcoin

(BTC)
without
directly
investing
in
the
digital
asset,
as
shares
of
the
company
are
highly
correlated
with
the
token
due
to
MicroStrategy’s
holding
252,220
BTC.

Bitcoin’s
price
has
just
exceeded
$66,000
for
the
first
time
since
July
31.
At
that
time,
MicroStrategy
was
priced
at
$168;
it
is
now
trading
at
almost
$178,
$10
a
share
higher.
As
MicroStrategy
is
trading
higher
while
bitcoin
effectively
has
been
flat
since
then,
this
shows
that
MicroStrategy
is
leading
the
current
rally.

Another
development
can
be
seen
with
the
divergence
between
MicroStrategy
and
NVIDIA
(NVDA).
Both
assets
were
in
lockstep
for
the
past
month,
but
since
Sept.
19,
MicroStrategy
has
gone
on
from
strength
to
strength
while
NVIDIA
has
flatlined.
This
shows
that
tech
is
not
the
primary
driver
in
this
rally.