MicroStrategy 2X Leveraged ETF Sees Massive Inflows in First Week of Trading as MSTR Outpaces Bitcoin

Seven days after its launch, the T-REX 2X Long MSTR Daily Target ETF (MSTU) has become one of the most successful new exchange-traded funds (ETFs) on the market, attracting more than 72 of millions of dollars.

The fund, issued by REX Shares and Tuttle Capital Management, promises twice-daily performance on shares of MicroStrategy ( MSTR ), the software mogul turned bitcoin strategy company, the most leverage of any MSTR-linked fund.

A similar fund, the Defiance Daily Target 1.75X Long MicroStrategy ETF (MSTX), promises traders returns of 175% on the daily percentage change in MSTR’s share price. MSTX launched on Aug. 15 and has raised about $857 million so far, according to Bloomberg Intelligence senior ETF analyst Eric Balchunas, putting it in the top 8 percent of launches this year.

“Both have robust liquidity,” Balchunas said in a post on X. “I didn’t think there was room for both (especially this quickly), it just (shows) how much ‘need for speed’ there is.”

MicroStrategy has been an attractive investment for traders looking to gain exposure to bitcoin {{BTC}} without directly investing in the digital asset, as the company’s shares are highly correlated with the token due to MicroStrategy’s holdings of 252,220 BTC.

MicroStrategy outperforms bitcoin and tech in current market rally

Bitcoin price just broke above $66,000 for the first time since July 31st. At that time, MicroStrategy was priced at $168; it now trades at nearly $178, up $10 a share. With MicroStrategy trading higher while bitcoin has been effectively flat since then, this shows that MicroStrategy is leading the current rally.

Another development can be seen with the divergence between MicroStrategy and NVIDIA (NVDA). Both assets have been on hold for the past month, but as of September 19, MicroStrategy has continued to rally while NVIDIA has stalled. This shows that technology is not the main driver in this rally.