United

Defiance

The first Bitcoin-related leveraged exchange-traded fund (ETF) has debuted in the United States in another significant development for institutional crypto adoption.
The new leveraged MicroStrategy ETF, MSTX, seeks to provide 175% long daily targeted exposure to MicroStrategy.
The ETF could help offer more leveraged exposure to Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>), according to Sylvia Jablonski, the CEO of Defiance ETFs, who <a href="https://www.globenewswire.com/news-release/2024/08/15/2930650/0/en/Defiance-Launches-MSTX-The-First-Leveraged-Single-Stock-ETF-on-MicroStrategy-in-the-US.html%5D" target="_blank" rel="noopener nofollow">said</a>&nbsp;in an Aug. 15 announcement:
<blockquote data-ct-non-breakable="true">
 “We’re amplifying the potential for investors seeking long-leveraged exposure to Bitcoin. Given MicroStrategy’s inherent higher beta compared to Bitcoin, MSTX offers a unique opportunity for investors to maximize their leverage exposure to the Bitcoin market within an ETF wrapper."
</blockquote>
<a href="https://cointelegraph.com/explained/what-are-etf-fund-flows-and-why-do-they-matter">ETF inflows</a> can significantly contribute to a cryptocurrency’s price appreciation. For Bitcoin, ETFs accounted for about <a href="https://cointelegraph.com/news/bitcoin-etfs-about-75-new-investment">75% of new investment</a> in the cryptocurrency by Feb. 15 as it surpassed the $50,000 mark.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/2b1e38b1-629a-48f4-b1dd-2c15a4203773.jpeg" alt="First leveraged MicroStrategy ETF launches in US" title="">
 <figcaption style="text-align: center;">
 MSTX announcement. Source: Defiance Invest
 </figcaption>
</figure>
Related: <a href="https://cointelegraph.com/news/bitcoin-s-bull-rally-will-continue-another-350-days-bybit">Bitcoin’s bull rally will continue another 350 days: Bybit</a>
<h2 data-ct-non-breakable="true" id="microstrategy-outperformed-499-out-of-500-in-the-sp-500-saylor">MicroStrategy outperformed 499 out of 500 in the S&amp;P 500 — Saylor</h2>
MicroStrategy is one of the first publicly traded companies to hold Bitcoin on its balance sheet.
The company has outperformed 99% of the firms in the S&amp;P 500 index, according to an Aug. 11 X post by Michael Saylor, the founder of MicroStrategy, who <a href="https://x.com/saylor/status/1822604650593349832" target="_blank" rel="noopener nofollow">wrote</a>:
<blockquote data-ct-non-breakable="true">
 “Four years ago today, MicroStrategy adopted #Bitcoin as its primary treasury reserve asset; since then $MSTR has outperformed 499 of 500 stocks in the S&amp;P 500.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/3929c4e6-dcc1-4271-af3e-555990434c12.png" alt="First leveraged MicroStrategy ETF launches in US" title="">
 <figcaption style="text-align: center;">
 Top 10 performing stocks in S&amp;P 500. Source: Michael Saylor
 </figcaption>
</figure>
The new leveraged ETF could generate significant interest among investors due to MicroStrategy stock’s attractive price performance, which outperformed Bitcoin during the past months.
During the past six months, MicroStrategy shares rose over 70% while Bitcoin price only rose 13%, <a href="https://www.tradingview.com/chart/3Z94myyP/?symbol=BITSTAMP%3ABTCUSD" target="_blank" rel="noopener nofollow">according</a> to Bitstamp data.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/cf8c94a4-ffd8-4a31-af48-bd3e989d8b55.png" alt="First leveraged MicroStrategy ETF launches in US" title="">
 <figcaption style="text-align: center;">
 BTC and MicroStrategy price, six-month chart. Source: Tradingview
 </figcaption>
</figure>
Related: <a href="https://cointelegraph.com/news/brazil-first-spot-solana-etf-launch">Brazil poised to launch world’s first spot Solana ETF ahead of global markets</a>
<h3 data-ct-non-breakable="true" id="mstx-etf-is-targeting-sophisticated-investors">MSTX ETF is targeting “sophisticated investors”</h3>
Due to the risky nature of leveraged investments, the fund is not targeted toward retail, but more sophisticated investors, according to Defiance’s announcement:
<blockquote data-ct-non-breakable="true">
 “The Fund is not suitable for all investors. The Fund is designed to be utilized only by sophisticated investors, such as traders and active investors employing dynamic strategies.”
</blockquote>
The ETF could indeed be the most volatile ETF in the US, according to Eric Balchunas, a senior ETF analyst at Bloomberg, who wrote in an Aug. 14 X <a href="https://x.com/EricBalchunas/status/1823824187481579833/photo/1" target="_blank" rel="noopener nofollow">post</a>:
<blockquote data-ct-non-breakable="true">
 “It will be the most volatile ETF you can get in the US market (equiv to 13x SPY) edging out $MSOX (2x weed), a big step in the hot sauce arms race.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/d3ad0b47-81ec-4812-b33a-1aa0ff806e15.png" alt="First leveraged MicroStrategy ETF launches in US" title="">
 <figcaption style="text-align: center;">
 MSTX ETF, pending listing. Source: Eric Balchunas
 </figcaption>
</figure>
Magazine: <a href="https://cointelegraph.com/magazine/china-crypto-ban-investors/">How Chinese traders and miners get around China’s crypto ban</a>

First leveraged MicroStrategy ETF launches in US

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