15 Aug 2024
SEC Approves Leveraged ETF Tied to MicroStrategy's Bitcoin Bets
The SEC has approved the Defiance Daily Target 1.75X Long MSTR ETF, which offers investors leveraged exposure to MicroStrategy (MSTR), a company heavily invested in Bitcoin. This ETF seeks to deliver 1.75 times the daily percentage change in MicroStrategy's stock price.
MicroStrategy, led by Michael Saylor, has been using convertible debt to buy Bitcoin, making this fund highly volatile. The ETF comes with a 1.29% management fee, appealing to those looking for quick, super-sized returns.
With MicroStrategy’s five-year volatility at 84.19%, Bloomberg analyst Eric Balchunas calls this the most volatile ETF in the U.S. market.
#Bitcoin #MicroStrategy #ETF
