When it comes to cryptocurrency exposure, indirect can sometimes be best. Sure, you can buy Bitcoin and try to time the market to make a simple profit. Or, if you’re a savvy trader, you may want to consider a leveraged bet. After all, Bitcoin is volatile, enabling investors to make money on both the upside and the downside.
REX Shares has released two funds that offer the opportunity to do exactly that. REX Shares recently filed with the Securities and Exchange Commission for a new 2x-leveraged MicroStrategy ETF, the T-Rex 2X Long MSTR Daily Target ETF, which will track the daily performance of MicroStrategy Inc. (NASDAQ:MSTR) multiplied by 200%. There is also the T Rex 2X Inverse MSTR Daily Target ETF which seeks daily investment results, before fees and expenses, of 200% of the inverse (or opposite) of the daily performance of MSTR. With these two ETFs, bears and bulls can get in on the Bitcoin ride both up and down.
It’s worth noting that the fund isn’t suitable for all investors; it’s designed to be used only by knowledgeable investors who are able to understand the possible consequences of seeking daily inverse (-2.0X) investment results and the risks associated with the use of shorting, and who are willing to monitor their portfolios frequently. The fund isn’t intended for, nor appropriate for, investors who won’t be actively monitoring and managing their portfolios. For periods longer than a single day, the fund will lose money if the Reference Assets’ performance is flat, and it is possible that the fund will lose money even if the Reference Assets’ performance decreases over a period longer than a single day. An investor could lose the full principal value of their investment within a single day if the price of the Reference Assets goes up by more than 50% in one trading day. The fund only intends to use reference assets that are traded on a U.S. regulated exchange.
MicroStrategy’s Large Bitcoin Exposure
So why MicroStrategy? The software company happens to be an early and big holder of Bitcoin. It currently owns 226,500 BTC – valued at nearly $13 billion – and is in the market for more. Earlier this month, MicroStrategy announced a plan to issue $700 million in notes due in 2028 to purchase additional Bitcoin. Given its heavy exposure to Bitcoin, MicroStrategy is known for its volatility, which many leveraged traders see as a positive. As of September, MicroStrategy’s 30-day implied future volatility was at a mean of 0.8466. The volatility can be so high with MicroStrategy that Bloomberg ETF analyst Eric Balchunas said on X that the new funds will be the most volatile ETFs ever in the United States, calling it the “ghost pepper of ETF hot sauce.”
Seek to boost your Bitcoin returns with leveraged ETFs from REX Shares.
REX Shares says that investing in a MicroStrategy leveraged ETF can offer a distinct way to gain amplified exposure to both MicroStrategy’s core business and its Bitcoin …
Full story available on Benzinga.com