Key Takeaways
- SEC has approved a 1.75X leveraged ETF focused on MicroStrategy.
- MicroStrategy’s 5-year annualized volatility reached 84.19% by March 2024.
- The fund carries a management fee of 1.29% for high-risk investors.
The U.S. Securities and Exchange Commission (SEC) has approved the launch of the Defiance Daily Target 1.75X Long MSTR ETF, a fund that leverages daily returns of MicroStrategy by 1.75 times.
MicroStrategy, led by Michael Saylor, is known for issuing convertible debt to invest in Bitcoin. The company’s five-year volatility rate up to March 31, 2024, was a staggering 84.19%, and this new ETF amplifies that exposure.
The fund comes with a significant management fee of 1.29%, making it attractive to investors seeking rapid, high-stakes returns. Bloomberg Intelligence’s Eric Balchunas commented that this might become the most volatile ETF in the U.S. market, given MicroStrategy’s aggressive Bitcoin investment strategy.
MicroStrategy’s stock (MSTR) rose 3.59% recently, while Bitcoin saw a modest 0.17% increase.
