The proposal of leveraged ETFs yielding 2x exposure to MicroStrategy's stock price had one analyst comparing them to extremely hot peppers.
Investors seeking leveraged exposure to Bitcoin’s price may be in store for some spicy TradFi products, following the T-Rex Group’s filing for several MicroStrategy ETFs on Thursday.
The issuer of leveraged funds for tech giants like Tesla and Nvidia signaled that the Bitcoin-hungry software firm is next up on its plate. T-Rex submitted applications for two ETFs—one that would deliver 2x long performance on MicroStrategy’s stock—alongside a correlating inverse option, according to filings with the U.S. Securities and Exchange Commission (SEC).
The spiciness associated with digital assets may already be too hot to handle for some. And according to Bloomberg ETF analyst Eric Balchunas, T-Rex’s proposed ETFs are positioned toward the particularly pungent end of the scoville scale, used to measure the strength of chilis.
“These are a near-lock to be most volatile ETFs ever seen in the U.S.,” he wrote on Twitter (aka X), describing the set of products as “the ghost pepper of ETF hot sauce.”
