The Defiance Daily Target 2X Long MSTR ETF (MSTX), an exchange-traded fund designed to provide twice the daily returns of MicroStrategy (MSTR), soared by 7.37% in pre-market trading on Tuesday. This significant surge in MSTX's price can be attributed to the growing popularity and hype surrounding MicroStrategy's massive Bitcoin holdings.
MicroStrategy, a software company turned Bitcoin investment vehicle, has been on a relentless buying spree, accumulating $43 billion worth of the world's largest cryptocurrency. This aggressive Bitcoin acquisition strategy has propelled MicroStrategy's stock price to new heights, with a staggering 430% increase in 2024 alone.
As MSTX is a leveraged ETF tracking MicroStrategy's performance, it has become a popular investment tool for traders seeking amplified exposure to MicroStrategy's Bitcoin-fueled rally. However, the rapid growth of MSTX and its counterpart, the T-Rex 2X Long MSTR Daily Target ETF (MSTU), has presented significant challenges in accurately tracking their intended 2x daily returns.
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