T-REX 2X Long MSTR ETF Sees Impressive Inflows Amid MicroStrategy’s Outperformance
The T-REX 2X Long MSTR Daily Target ETF (MSTU) achieved $72 million in inflows during its first week of trading, becoming a highly successful new ETF. This fund offers twice the daily performance of MicroStrategy (MSTR), which, holding significant Bitcoin assets, is showing stronger performance than both Bitcoin and traditional tech stocks in a market rally.
In its inaugural week of trading, the T-REX 2X Long MSTR Daily Target ETF (MSTU) has garnered remarkable attention, attracting $72 million in inflows, as reported by Bloomberg Intelligence. This exchange-traded fund, created by REX Shares and Tuttle Capital Management, aims to deliver double the daily performance of MicroStrategy, Inc. (MSTR), a software firm that has pivoted to leverage Bitcoin for its strategic investments. The MSTU ETF stands out as one of the most rapidly successful ETFs launched this year, only seven days post-launch. Its performance is particularly compelling against its competitor, the Defiance Daily Target 1.75X Long MicroStrategy ETF (MSTX), which has raised approximately $857 million since its commencement on August 15, ranking it within the top 8% of ETF launches in 2023. According to Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, “Both have robust liquidity. I didn’t think there was room for both (esp so quickly), it just [shows] how much ‘need for speed’ there is out there.” MicroStrategy’s stock has become an attractive alternative for investors seeking exposure to Bitcoin without directly investing in the cryptocurrency, as MicroStrategy holds an impressive 252,220 BTC. Moreover, MicroStrategy has demonstrated stronger performance than Bitcoin in the ongoing market rally. As of now, while Bitcoin has risen slightly over $66,000, MicroStrategy’s stock has averaged $178 per share after previously being priced at $168, marking a significant lead in the current upswing. Furthermore, a noteworthy deviation has occurred with MicroStrategy outperforming NVIDIA (NVDA), which has remained stagnant since September 19, indicating a broader market trend that does not rely solely on technology stocks.
The emergence and successful launch of the T-REX 2X Long MSTR Daily Target ETF (MSTU) signify the growing interest of investors in leveraged exchange-traded funds that focus on cryptocurrency-related stocks. MicroStrategy’s strategic investments in Bitcoin have made it a key player in the crypto market, providing a unique opportunity for investors. With substantial inflows into these ETFs, there is a clear indication of the market’s demand for products that offer exposure to cryptocurrencies without necessitating direct investments in digital assets.
In summary, the T-REX 2X Long MSTR Daily Target ETF (MSTU) has quickly established itself as a noteworthy contender among recently launched exchange-traded funds, attracting over $72 million within its first week. MicroStrategy’s robust stock performance relative to Bitcoin and other tech stocks reflects a notable shift in investor sentiment. The success of both MSTU and the Defiance Daily Target 1.75X Long MicroStrategy ETF (MSTX) exemplifies a strong demand for leveraged investment vehicles that capitalize on the performance of companies closely tied to the cryptocurrency market.
Original Source: www.coindesk.com
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