T-Rex Group, an issuer of exchange-traded funds, is filing applications for two MicroStrategy-related ETFs (MSTR) with the U.S. Securities and Exchange Commission, including:
2X Long MSTR Daily Target ETF: aims to deliver 200% of MicroStrategy's daily performance.
2X Inverse MSTR Daily Target ETF: aims to provide -200% (inverse) of MicroStrategy's daily performance.
This move is significant, especially with MSTR having strong ties to Bitcoin. MicroStrategy (MSTR) stands out for its significant investment in Bitcoin, making its stock highly correlated with BTC price movements.
MSTR's current implied volatility is 85.6, which is quite high, although falling from recent averages as Bitcoin prices stabilize. Implied volatility measures the market's expectations of a stock's future movements.
Michael Saylor's MicroStrategy recently issued $700 million of convertible senior notes to increase the company's Bitcoin holdings to 226,331 tokens. This move could further increase MSTR's volatility depending on the market reaction.
Bloomberg ETF analyst Eric Balchunas said that the proposed ETFs could be very volatile and exceed the volatility of the S&P 500 index (SPX) by up to 20 times. This forecast highlights the enhanced risk associated with ETFs that claim to be connected to volatile assets like bitcoin and stalwarts in the sector.
ETF issuers Defiance and GraniteShares have also listed products that hold Short MSTR positions.
T-Rex also filed for six leveraged inverse Bitcoin ETFs in March, with positions ranging from 1.5x-2x.
In short, the introduction of new ETFs by T-Rex Group reflects a strategic move to capitalize on Bitcoin's volatility through MicroStrategy shares. These ETFs are expected to be highly volatile, providing investors with opportunities to enhance returns but also high risk based on daily fluctuations in MSTR – which are closely linked to the Bitcoin price fluctuations.
https://tapchibitcoin.io/t-rex-group-nop-don-dang-ky-2-quy-microstrategy-etf-nham-tan-dung-su-bien-dong-cua-bitcoin.html
