According to ChainCatcher news, asset management company GraniteShares, with over $10 billion in AUM, has submitted new leveraged ETF applications to track the stock prices of crypto-related companies like Riot Platforms, Marathon Digital, MicroStrategy, and Robinhood. These funds will take both long and short positions, with the 2x long ETFs 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, with cryptocurrencies and stock markets reaching all-time highs, these leveraged ETFs have become very popular. Among them, the T-Rex 2x Long MSTR Daily Target Fund (ticker symbol MSTU) has attracted over $1.8 billion in assets under management. 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 rose by 150%, while MSTU and MSTX rose by 308% and 253%, respectively. However, the risk is that in a bear market, they typically perform worse than the underlying stock. MicroStrategy's stock has fallen by 24% in the past 30 days, while MSTU and MSTX have dropped by over 50% in the same period.