Cryptocurrency | Price (USDT) |
---|---|
BTC | $106467.4000000000 |
ETH | $2430.3990000000 |
BNB | $648.2396300000 |
XRP | $2.1934990000 |
ADA | $0.5487550000 |
SOL | $147.8464000000 |
DOGE | $N/A |
DOT | $3.3466800000 |
LTC | $85.1098000000 |
LINK | $13.0715400000 |
Category: CRYPTO NEWS
The post Leveraged MicroStrategy ETFs Top $400M in Assets appeared on BitcoinEthereumNews.com. Leveraged MicroStrategy ETFs surpassed $400 million in net assets, driven by retail investors seeking exposure to Bitcoin’s volatility. Defiance ETFs launched a leveraged MSTR ETF in August, and rivals REX Shares and Tuttle Capital Management followed suit in September with even more turbo-charged versions. Bloomberg ETF analyst Eric Balchunas termed it the “hot sauce arms race.” MicroStrategy to Lend Bitcoin for Yield? MicroStrategy had its genesis as a business intelligence company, but it inverted into a cryptocurrency hedge fund back in 2020, through the founder Michael Saylor, who decided on Leveraged MicroStrategy ETFs in order to leverage the balance sheet to buy Bitcoin. For the firm, Leveraged MicroStrategy ETFs are shifted to “Bitcoin Yield” as a metric of success now implies its commitment to increasing Bitcoin holdings per share for its shareholders. It did this on August 1, 2023, while continuing to find ways to leverage its balance sheet even more. On September 16, the firm announced a $700 million debt offering that was in part intended to be used to acquire additional Bitcoins. Analyst Mark Palmer at Benchmark went further to say that the company could even start lending out Bitcoin to create more yield. MicroStrategy ETFs Heat Up: 2X Long and Short Options Now Available As part of its developing Bitcoin strategy, new ETFs targeting the company’s performance have launched. Defiance ETFs launched the Defiance Daily Target 1.75X Long MSTR ETF on August 15, providing 175% leveraged exposure. On the other hand, REX Shares and Tuttle Capital Management launched two on September 18, the T-REX 2X Long MSTR Daily Target ETF and the T-REX 2X Inverse MSTR Daily Target ETF target leveraged long and short, respectively. These ETFs extend the growing interest in MSTR as a stock proxy for Bitcoin exposure to investors looking to capitalize on its…
2024-09-28T03:20:07+00:00