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T-Rex Group has filed for new ETFs that take a leveraged long or short position in Microstrategy (MSTR).
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MSTR is known for its volatility due to its large exposure to bitcoin.
T-Rex Group, the issuer of exchange-traded funds (ETFs), has filed for an ETF that will take a 2x long position in bitcoin {{BTC}}-heavy Microstrategy (MSTR).
According to a document published on the Securities and The Exchange Commission’s EDGAR platformThe T-Rex 2X Long MSTR Daily Target ETF aims to match 200% of MicroStrategy’s daily performance.
T-Rex has also filed for an ETF that would take a 2x inverse position in MSTR. In effect, both listed products would be long or short on bitcoin.
MSTR, with its large exposure to bitcoin, is known for its volatility as it tracks the world’s largest digital assets. The stock Current implied volatility is high at 85.6but the trend is lower than the recent average as bitcoin price remains stable.
Recently, CEO Michael Saylor the company announced would offer $500 million in convertible notes to increase its bitcoin holdings.
Bloomberg ETF analyst Eric Balchunas wrote on
T-Rex has just submitted an application for the very first 2x Microstrategy $MSTR ETFs… these are almost the most volatile ETFs ever seen in the US, likely to be in the region of 20x the volatility of SPX. The ghost pepper from ETF hot sauce. photo.twitter.com/NlUQMVTOxI
— Eric Balchunas (@EricBalchunas) June 27, 2024
They will be the “ghost pepper of the ETF hot sauce,” he said.
ETF Issuers defiance And Granite Shares have also listed products that take a short position in MSTR.
T-Rex also filed for six leveraged inverse bitcoin ETFs in March, with positions ranging from 1.5x-2x.
