• T-Rex’s 2x MicroStrategy ETF (MSTU) is up 225% in just two weeks since its launch
• The ETF has already amassed around $1 billion in assets under management
• MSTU should be treated as a 4X Bitcoin ETF given MicroStrategy’s significant Bitcoin holdings
MicroStrategy ETF has shown impressive gains of 225% in just two weeks according to analyst Eric Balchunas. The ETF, which tracks MicroStrategy stock, benefits from MicroStrategy’s large Bitcoin holdings.
Launch and Early Success
The T-REX 2X Long MSTR Daily Target ETF (MSTU) launched 6 weeks ago and already has $1 billion in assets under management. MSTU saw over $70 million in inflows during its first week of trading.
Outperforming Bitcoin
While Bitcoin is up 27% over the past 24 hours, MSTU is up 225% in just two weeks. The ETF aims to double the performance of MicroStrategy stock, which is up 53% over the past month.
Leveraged Exposure to Bitcoin
As Balchunas notes, MSTU essentially functions as a leveraged Bitcoin ETF, with 4x the volatility of Bitcoin itself. While 4x Bitcoin ETFs are not allowed in the US, MSTU provides similar exposure for speculative traders.
MicroStrategy and Bitcoin
MicroStrategy’s business pivot to Bitcoin has paid off tremendously. The company holds over 130,000 BTC and its stock price has surged accordingly. MSTU benefits from this increased exposure to Bitcoin’s price swings.
Conclusion
MSTU has had a remarkably strong start as an ETF, handily outpacing Bitcoin itself. With MicroStrategy continuing to acquire more Bitcoin, the ETF seems poised to benefit from Bitcoin’s long-term growth.
