Defiance Unveils MSTX: The Most Volatile U.S. ETF, Tied to MicroStrategy's Bitcoin-Heavy Portfolio

Defiance Unveils Highly Volatile MicroStrategy 1.75x ETF (MSTX) – A New Benchmark in U.S. Markets

On August 15, Defiance made waves in the financial world with the launch of its MicroStrategy 1.75x ETF (MSTX), a new exchange-traded fund (ETF) tied to leveraged MicroStrategy (MSTR) stocks. This ETF, which promises a high-risk, high-reward investment opportunity, has already garnered attention for its unprecedented volatility. According to Bloomberg's ETF expert Eric Balchunas, MSTX has quickly become the most volatile ETF available in the U.S. market, exhibiting volatility levels 13 times higher than the well-known SPDR S&P 500 ETF Trust (SPY).

The MSTX ETF is projected to hit 168 volatility points over a 90-day period. However, Balchunas noted that this "volatility ceiling" could be surpassed in the future as more products incorporate MSTX into their offerings.

Despite its status as the most volatile ETF in the U.S., the MSTX still falls short when compared to Europe’s GraniteShares 3x Long MicroStrategy Daily ETP Fund (3LMI LN), which offers nearly twice the leverage on MSTR shares. This fund remains the global leader in volatility among MicroStrategy-related products.

MicroStrategy, a company famous for its massive Bitcoin (BTC) holdings, with a stash of 226,500 BTC, remains a focal point for investors seeking indirect exposure to Bitcoin through MSTR shares. Led by Michael Saylor, the company has added 37,148 BTC to its reserves in 2024 alone, and its stock price has surged by 95% year-to-date. As of now, MicroStrategy's unrealized profit stands at an impressive $5 billion, reflecting its bold bet on Bitcoin's future.