T-Rex Group has filed for brand spanking new ETFs that take a leveraged lengthy or brief place in Microstrategy (MSTR).
MSTR is thought for its volatility given its heavy publicity to bitcoin.
T-Rex Group, the exchange-traded funds (ETFs) issuer, has filed for an ETF that may take a 2x lengthy place in bitcoin (BTC)-heavy Microstrategy (MSTR).
Based on a submitting printed on the Securities and Alternate Fee’s EDGAR platform, the T-Rex 2X Lengthy MSTR Every day Goal ETF goals to realize 200% of MicroStrategy’s every day efficiency.
T-Rex additionally filed for an ETF that may take a 2x inverted place in MSTR. Successfully, each of those listed merchandise could be a leveraged lengthy or brief on bitcoin.
MSTR, with its heavy publicity to bitcoin, is thought for its volatility because it tracks the world’s largest digital asset. The inventory’s present implied volatility is excessive at 85.6, however trending decrease than its latest common, as bitcoin’s value stays steady.
Just lately its CEO, Michael Saylor, introduced the agency would supply $500 million in convertible notes to spice up its bitcoin holdings.
Bloomberg ETF analyst Eric Balchunas wrote on X that these ETFs could be a “near-lock to be essentially the most risky ETFs ever seen within the U.S, with 20x the volatility of the SPX.”
They would be the “ghost pepper of ETF scorching sauce”, he stated.
ETF issuers Defiance and GraniteShares have additionally listed merchandise that take a brief place in MSTR.
T-Rex additionally filed for six leveraged inverse bitcoin ETFs in March, with positions starting from 1.5x-2x.