CoinVoice has recently learned that, according to crypto.news, GraniteShares, an asset management company with AUM exceeding $10 billion, has submitted a new leveraged ETF application to track the stock prices of crypto-related companies such as Riot Platforms, Marathon Digital, MicroStrategy, and Robinhood. These funds will go long and short at the same time, with the 2x long ETF generating double the daily returns of the corresponding stocks. For example, when Riot Platform's stock rises by 1%, the GraniteShares 2x Long RIOT ETF will rise by 2%.
This year, as the cryptocurrency and stock markets surged to all-time highs, these leveraged ETFs have become very popular. Among them, the T-Rex 2x Long MSTR Daily Target fund (ticker symbol MSTU) attracted over $1.8 billion in managed assets. Similarly, the Defiance Daily Target 2X Long MSTR ETF (ticker symbol MSTX) has accumulated $1.8 billion in assets.
These funds have outperformed MicroStrategy over the past three months, during which MicroStrategy's stock price increased by 150%, while MSTU and MSTX rose by 308% and 253%, respectively. However, the risk is that in a bear market, their performance is usually worse than the underlying stocks. MicroStrategy's stock has dropped 24% in the past 30 days, while MSTU and MSTX have fallen by more than 50% during the same period. [Original link]