REX Shares has unveiled two new leveraged exchange-traded funds (ETFs) that track MicroStrategy Inc. (NASDAQ: MSTR), providing investors with an indirect method to gain amplified exposure to Bitcoin price movements. The T-Rex 2X Long MSTR Daily Target ETF aims to deliver 200% of MicroStrategy’s daily performance, while the T Rex 2X Inverse MSTR Daily Target ETF seeks to achieve 200% of the inverse daily performance.
These new funds capitalize on MicroStrategy’s significant Bitcoin holdings, which currently amount to 226,500 BTC valued at nearly $13 billion. As a result of its heavy Bitcoin exposure, MicroStrategy’s stock is known for its high volatility, making it an attractive target for leveraged trading products.
The introduction of these ETFs comes amid growing investor appetite for cryptocurrency-focused investment products. Since the debut of spot Bitcoin ETFs in January, such products have amassed $61 billion in assets under management. REX Shares’ new offerings provide traders with additional tools to potentially profit from Bitcoin’s price swings without directly owning the cryptocurrency.
However, investors should be aware of the risks associated with leveraged ETFs. These products are designed for short-term trading and can lead to magnified losses as well as gains. REX Shares emphasizes that these funds are intended for knowledgeable investors who understand the consequences of seeking daily leveraged investment results and are willing to actively monitor their portfolios.
Scott Acheychek, COO of REX Financial, REX Shares’ parent company, stated, ‘Bitcoin’s meteoric rise in 2024 has captured the attention of investors and traders worldwide. By launching 2X leveraged and inverse Bitcoin ETFs, we’re arming traders with powerful tools to capitalize on Bitcoin’s price swings like never before.’
The new MicroStrategy ETFs complement REX Shares’ existing Bitcoin-focused products, including the T-REX 2X Long Bitcoin Daily Target ETF (BATS: BTCL) and the T-REX 2X Inverse Bitcoin Daily Target ETF (BATS: BTCZ), which were launched in July in collaboration with Tuttle Capital Management.
As the cryptocurrency market continues to evolve, these new investment vehicles offer sophisticated traders additional options for gaining exposure to Bitcoin’s price movements. However, potential investors should carefully consider the risks and complexities associated with leveraged ETFs before incorporating them into their investment strategies.
The launch of these products underscores the growing intersection between traditional finance and the cryptocurrency market, as well as the increasing demand for diverse investment options in the digital asset space. As the market matures, it is likely that we will see further innovations in financial products designed to provide exposure to cryptocurrencies and related assets.
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