T-Rex Group, a financial services firm, has filed for a new leveraged MicroStrategy (MSTR) exchange-traded fund (ETF) in the United States. Dubbed by analysts as the "ghost pepper" of ETFs due to its potential volatility, the proposed 2X leveraged ETF aims to provide investors with double the exposure to MicroStrategy’s stock performance.
Senior Bloomberg ETF analyst Eric Balchunas highlighted the fund’s potential risk, noting that it could exhibit around 20 times the volatility of the S&P 500. The fund's extreme volatility is likened to that of a three-times-leveraged MicroStrategy ETF currently available in the European market.
MicroStrategy, founded in 1989 by Michael Saylor, has become one of the largest publicly traded holders of Bitcoin, holding 214,400 Bitcoin worth $13.2 billion. The company’s share price has surged significantly, driven by the appreciation of Bitcoin, with a 120% increase since the beginning of the year.
Saylor has been an outspoken advocate for Bitcoin, positioning it as a hedge against inflation and a superior alternative to cash. His strategy has inspired other companies to adopt Bitcoin-focused treasury strategies.
As T-Rex Group awaits regulatory approval for this high-risk ETF, the financial community closely monitors the implications for investors and market stability.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
