Microstrategy leveraged ETF (MSTX) attracts $127M in assets in six days, potentially positive for market.

From Nasdaq Corporation

August 26, 2024 5:31:12 pm:

Microstrategy (MSTR) is a significant corporate holder of Bitcoin and has raised debt to increase its stockpile. A new MicroStrategy leveraged ETF (MSTX) by Defiance ETFs has gained $127 million in assets in just six days. With daily trading volumes over $100 million, investors view MSTR as a proxy for Bitcoin due to its strong ties to the cryptocurrency.

The MSTX ETF aims to multiply MSTR’s daily returns by 1.75x, leading to high volatility and potential big short-term swings. Institutional interest in Bitcoin is growing, with South Korea’s National Pension Service investing $33.75 million in MicroStrategy and other funds investing in the crypto through ETFs. This growing interest could boost demand for MSTX and MSTR.

Analysts on Wall Street have a Strong Buy consensus rating on MSTR stock, with eight Buy ratings in the past three months. MSTR has increased by 327% in the past year, and the average price target of $216.63 per share implies an upside potential of 47.47% from current levels.

Read more at CNN Business: Leveraged Microstrategy ETF (NASDAQ:MSTX) Attracts $127M in Six Days