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ETF issuer Defiance today launched a MicroStrategy 1.75x ETF (MSTX), a fund indexed to leveraged MSTR stocks. According to Bloomberg ETF analyst Eric Balchunas, this is the most volatile ETF traded in the US, which equates to 13 times the volatility recorded by SPDR S&P 500 ETF Trust (SPY).

Interestingly, the MSTX shows an estimate of 168 volatility points for the 90-day time frame. However, Balchunas added that this “volatility barrier” may be broken in the future as there are issues with adding the MSTX to other products.

Moreover, despite being the most volatile in the U.S., the MSTX is still losing to the GraniteShares 3x Long MicroStrategy Daily ETP Fund (3LMI LN) in Europe, the Bloomberg ETF analyst pointed out. That fund uses almost double the leverage that Defiance offers on MSTR shares.

Exposure to Bitcoin

MicroStrategy is the publicly traded company with the largest amount of Bitcoin (BTC) in its treasury, a stash of 226,500 BTC. By adding MSTR shares to their portfolio, companies thus gain indirect exposure to Bitcoin.

The Michael Saylor-led company has added 37,148 BTC so far in 2024. In the same period, the shares grew by 95%, given the price at the time of writing. Their unrealized gains amount to almost $5 billion.

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