Just one week after its launch, the T-REX 2X Long MSTR Daily Target ETF (MSTU) has emerged as one of the most successful new exchange-traded funds (ETFs), attracting over $72 million in investments.
Launched by REX Shares and Tuttle Capital Management, MSTU aims to deliver double the daily performance of MicroStrategy’s stock (MSTR), making it the most leveraged fund linked to the software and bitcoin strategy company. In contrast, the Defiance Daily Target 1.75X Long MicroStrategy ETF (MSTX), which went live on August 15, offers returns of 175% of the daily percentage change in MSTR’s share price and has raised approximately $857 million, placing it in the top 8% of ETF launches this year, according to Bloomberg Intelligence’s senior ETF analyst Eric Balchunas.
Balchunas noted on X that both funds exhibit strong liquidity, commenting, “I didn’t think there was room for both (especially so quickly); it just shows how much ‘need for speed’ there is out there.”
MicroStrategy has become a popular choice for investors seeking exposure to bitcoin without directly investing in the cryptocurrency, as the company’s shares are closely tied to bitcoin’s performance. MicroStrategy currently holds 252,220 BTC, establishing a strong correlation with the digital asset.
In the ongoing market rally, MicroStrategy has outperformed bitcoin and other tech stocks. Bitcoin’s price has recently surpassed $66,000 for the first time since July 31, while MicroStrategy shares have risen from $168 to nearly $178, indicating that the company is leading this upward trend.
Additionally, a notable divergence has occurred between MicroStrategy and NVIDIA (NVDA). While both stocks showed a strong correlation over the past month, MicroStrategy has continued to gain traction since September 19, while NVIDIA’s performance has stagnated, suggesting that technology stocks are not the primary drivers of the current market rally.
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