T-Rex Group, a financial services firm, has submitted an application for a leveraged MicroStrategy (MSTR) exchange-traded fund (ETF) in the US. Analyst Eric Balchunas referred to the potential volatility of the fund as the “ghost pepper” of ETFs. If approved, the ETF would expose investors to around 20 times the typical volatility of the S&P 500. Balchunas compared the current volatility of a three-times-leveraged Microstrategy ETF in the European market to the QQQ index, stating that it made the latter look like a “money market fund”. MicroStrategy, founded in 1989, has become one of the largest publicly traded holders of Bitcoin, with 214,400 BTC worth $13.2 billion. The company’s CEO, Michael Saylor, has cited Bitcoin as a hedge against inflation and a superior alternative to cash. MicroStrategy shares have seen significant gains this year, rising 120% and 336% from the start of this year and the same time last year, respectively.
Tyrannosaurus Rex applies for 2X leveraged MicroStrategy ETF featuring ghost pepper