According to SoSoValue, the trading volume of MSTZ (inverse 2x short MSTR ETF) skyrocketed on November 21, approaching $1.53 billion in a single day, compared to an average daily trading volume of $84 million. Meanwhile, the well-known short-selling firm Citron Research publicly announced its short position on MSTR (MicroStrategy), stating on social media that as investing in Bitcoin has become easier than ever (now one can buy ETFs, COIN, and HOOD), MSTR's trading volume has completely diverged from BTC's fundamentals. 'Although Citron remains optimistic about Bitcoin, it has hedged by establishing a short position in MSTR,' SoSoValue analysts stated. MSTR, as one of the channels for previously off-market funds to compliantly invest in crypto, has a very high premium, with the company's market cap at its peak being about 3.3 times the nominal value of the 331,200 Bitcoins held, with a premium exceeding 230%. The news that Gary Gensler, Chairman of the U.S. SEC, will resign on January 20, 2025, has influenced the market, and subsequent regulations are expected to remain favorable, providing investors with more compliant channels to invest in crypto, thereby breaking MSTR's uniqueness. The timing of the short position also reflects the expectation of losing this 'uniqueness premium.'
