South Korea’s NPS Buys 245K MSTR Stocks In Q2; SEC Approves MSTX!

South Korea’s National Pension Scheme disclosed purchasing 245,000 MicroStrategy (MSTR) stocks during the second quarter as per the latest 13F filing submitted to the SEC. The MSTR stock price is up 92% year to date, while most of the gains came in the first quarter of this year.

The total investment value of South Korea’s National Pension Scheme in acquiring MSTR stocks stands at 46 billion won or $33.7 million, which accounts for 0.04% of NPS’s direct investment portfolio in the US stocks.

During the third quarter of 2023, the NPS had acquired a massive 282,673 shares of coinbase coinbase [email protected] Centralised Exchange (COIN) stock, while beginning its direct investment in the crypto industry. The COIN share price which was trading at $78 has now surged by 3x to $222 by the end of the second quarter. Notably microstrategy microstrategy Business Intelligence is the largest single corporate holder of Bitcoins and currently holds more than 1% of the total Bitcoin supply in the market. 

SEC Approves MSTX, the first leveraged single-stock ETF!

According to a tweet by Sylvia Jablonski, CEO of Defiance ETFs, the SEC has approved MSTX, the first leveraged single-stock ETF targeting MicroStrategy. The fund, which began trading on Aug. 15, aims to provide investors with 175% daily targeted exposure to MicroStrategy’s stock performance. 

This ETF which offers 175% of MicroStrategy’s daily stock movements, also provides a unique high-risk, high-reward opportunity for investors seeking amplified exposure to Bitcoin through the company’s significant holdings.

Sylvia Jablonski, CEO of Defiance ETFs, stated, “Given MicroStrategy’s inherent higher beta than Bitcoin, MSTX offers a unique opportunity for investors to maximize their leverage exposure to the Bitcoin market within an ETF wrapper.”

It allows investors to gain leveraged exposure to MicroStrategy’s stock without needing a margin account, potentially boosting returns and risks, tied to Bitcoin’s performance. However, Defiance ETFs also warned that MSTX is designed for sophisticated investors who actively monitor and manage their portfolios.

Eric Balchunas, a Senior ETF Analyst at Bloomberg, in a recent tweet, stated that the upcoming launch of Defiance ETFs’ 1.75x leveraged MicroStrategy ETF ($MSTX) is set to become one of the most volatile ETFs available in the U.S. market.

Also Check Out: Crypto Regulations in South Korea 2024