The leveraged MicroStrategy ETF MSTX launched by Defiance Investments has gained quick traction with the trading volumes surging for the second consecutive day after launch. This shows that traders have been enjoying the volatility that the ETF brings to Wall Street.
MicroStrategy ETF MSTX Trading Volumes Surge
Bloomberg’s ETF Strategist Eric Balchunas highlighted the strong performance of the Microstrategy ETF stating that it has got impressive trading volumes within two days of launch. During its second day of trading, MSTX registered $34 million in trading activity, surpassing its first-day figures as well as other ETFs like $NVDL, which had a fraction of activity in the initial days.
Defiance has the rare out-of-the-gate hit on its hands, $MSTX already traded $34m today, more than its big Day One number. For context, $NVDL traded 1/100th of this in its first 2 days, and it has $5b now = get ready for more ‘f everything, we’re doing five blades’ type launches pic.twitter.com/CwWY7209WY
— Eric Balchunas (@EricBalchunas) August 16, 2024
Furthermore, Balchunas also speculated the reasons behind MSTX’s rapid action suggesting its connection to Bitcoin or the volatility-seeking traders just driving the initial interest. “We’ll find out the answer in time,” he noted.
Over the years, big players have used MicroStrategy as a proxy for betting in Bitcoin when regulated instruments like spot Bitcoin ETFs weren’t available in the market.
Although MSTX is the most volatile ETF currently in the United States, it pales in comparison to the 3x MicroStrategy ETF ($3LMI LN) in Europe. The $3LMI LN holds the track record of 90-day volatility of over 350%, surpassing a large number of other volatile ETFs in the market. Balchunas stated that the European 3x leveraged MicroStrategy ETF has stood out in ETF “wild” charts, with volatility levels that make typical riskier funds look tame by comparison.
MSTR Stock In Demand
The MicroStrategy stock has been in huge demand among big market players amid its outperformance to Bitcoin since the beginning of 2023. South Korea’s National Pension Fund recently gained exposure to the MSTR stock during the second quarter of this year sharing confidence in the company’s future growth and its Bitcoin adoption strategy.
The MSTR stock is already trading at 92% gains year-to-date against Bitcoin’s 35% gains so far in 2024.
Bhushan Akolkar
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/microstrategy-etf-mstx-sees-strong-trading-volumes-as-traders-enjoy-volatility/
✓ Share: