T-Rex Group, a leading financial services company, has recently made headlines by filing for a 2x leveraged MicroStrategy (MSTR) exchange-traded fund (ETF) in the United States. This move has sparked significant interest and controversy due to the potential volatility of the proposed ETF.
The ETF, named ‘T-Rex 2X Long MSTR Daily Target ETF,’ aims to amplify the daily performance of MicroStrategy’s publicly traded common stock by 200%. If approved, this fund could exhibit levels of volatility up to 20 times greater than the S&P 500, making it one of the most volatile ETFs in the US market. Bloomberg’s Senior ETF analyst, Eric Balchunas, has likened this ETF to the ‘ghost pepper of ETFs’ due to its expected extreme fluctuations.
Balchunas compared the potential volatility of this 2x leveraged MicroStrategy ETF to a similar 3x leveraged Microstrategy ETF already available in Europe. He noted that the QQQ, an index tracking top US companies, appears stable by comparison. The filing of this new ETF has raised eyebrows in the financial industry and has generated considerable buzz among investors.
MicroStrategy, founded in 1989 by Michael Saylor, has emerged as a major player in the world of cryptocurrency. The company currently holds a substantial amount of Bitcoin, with 214,400 BTC valued at $13.2 billion on its balance sheet. This significant investment in Bitcoin has positioned MicroStrategy as a key player in the digital asset market.
In addition to the 2x leveraged MicroStrategy ETF, T-Rex has also filed for six leveraged inverse Bitcoin ETFs with leverage ranging from 1.5x to 2x. This expansion into the cryptocurrency market further solidifies T-Rex’s position as an innovative player in the financial services industry.
The introduction of a 2x leveraged MicroStrategy ETF in the US market has the potential to shake up the industry and provide investors with new opportunities for high-risk, high-reward investments. The extreme volatility of this proposed ETF has garnered attention from experts and investors alike, making it a topic of interest and speculation in the financial world. As T-Rex continues to expand its offerings and venture into new markets, the future of leveraged ETFs in the US remains uncertain but full of potential growth and opportunity.
