Outside Source
The ETF could offer more leveraged exposure to Bitcoin, especially for institutional investors looking to diversify their holdings.
News
Own this piece of crypto history
The first Bitcoin-related leveraged exchange-traded fund (ETF) has debuted in the United States, in another significant development for institutional crypto adoption.
The new leveraged MicroStrategy ETF (MSTX) seeks to provide 175% long daily targeted exposure to MicroStrategy (MSTR).
The ETF could help offer more leveraged exposure to Bitcoin (BTC), according to Sylvia Jablonski, the CEO of Defiance ETFs, who said in an Aug. 15 announcement:
“We’re amplifying the potential for investors seeking long-leveraged exposure to Bitcoin. Given MicroStrategy’s inherent higher beta compared to Bitcoin, MSTX offers a unique opportunity for investors to maximize their leverage exposure to the Bitcoin market within an ETF wrapper.”
ETF inflows can significantly contribute to a cryptocurrency’s price appreciation. For Bitcoin, ETFs accounted for about 75% of new investment in the cryptocurrency by Feb. 15 as it surpassed the $50,000 mark.
Related: Bitcoin’s bull rally will continue another 350 days: Bybit
This is a developing story, and further information will be added as it becomes available.
This article first appeared at Cointelegraph.com News
