T-Rex Group has filed for new ETFs taking a long or short leveraged position in Microstrategy (MSTR).
MSTR is known for its volatility given its heavy exposure to bitcoin.
Exchange-traded fund (ETF) issuer T-Rex Group has filed for an ETF that will take a 2x long position in bitcoin {{BTC}}-rich Microstrategy (MSTR).
According to a filing published on Securities and EDGAR platform of the Foreign Exchange CommissionThe T-Rex 2X Long MSTR Daily Target ETF aims to achieve 200% of MicroStrategy’s daily performance.
T-Rex has also filed to create an ETF that would take a 2x inverse position in MSTR. In effect, both of these listed products would be leveraged long or short positions in bitcoin.
MSTR, with its heavy exposure to bitcoin, is known for its volatility as it tracks the world’s largest digital asset. Stocks current implied volatility is high at 85.6but with a trend below its recent average, as the price of bitcoin remains stable.
Recently, its CEO, Michael Saylor, announced the company reportedly offering $500 million in convertible bonds to boost its bitcoin holdings.
Bloomberg ETF analyst Eric Balchunas wrote on X that these ETFs would be “nearly the most volatile ETFs ever seen in the U.S., with volatility 20 times that of the SPX.”
T-Rex Just Filed for the First-Ever 2x Microstrategy $MSTR The ETFs… these are arguably the most volatile ETFs ever seen in the United States, their volatility will probably be in the order of 20 times that of the SPX. The ghost pepper in ETF hot sauce. pic.twitter.com/NlUQMVTOxI
— Eric Balchunas (@EricBalchunas) June 27, 2024
They will be the “ghost pepper to the ETF’s hot sauce,” he said.
ETF Issuers Challenge And Granite Stocks have also listed products that take a short position on MSTR.
T-Rex also filed six leveraged inverse Bitcoin ETFs in Marchwith positions ranging from 1.5x to 2x.
