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Leveraged MicroStrategy ETFs Are Playing With Fire, Experts Warn

Benzinga ·  Dec 3, 2024 04:04

Investors have poured billions into two highly leveraged ETFs linked toMicroStrategy Inc.(NASDAQ:MSTR), a company synonymous with aggressiveBitcoin(CRYPTO: BTC) investments.

What Happened:The T-Rex 2X Long MSTR Daily Target ETF and the Defiance Daily Target 2X Long MSTR ETF collectively now manage around $5 billion in assets, reflecting the fervor surrounding Bitcoin's recent rally, according to a report by The Wall Street Journal.

However, these funds, designed to amplify MicroStrategy's daily stock returns by 2x, have exposed investors to significant risks and underperformance.

MicroStrategy, which holds approximately $35 billion in Bitcoin, has seen its market capitalization surge to...

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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