Leverage Shares, a well-known Exchange Traded Product (ETP) issuer, has added the MicroStrategy ETF 3X Leveraged ETF to its product portfolio. The company deals with both long and short positions. MSTR shares long unofficial proxy Bitcoin $63,645 This step is not surprising since it is known as the ETF. However, MSTR is already being marketed by Saylor as a leveraged BTC stock.
Leveraged MSTR ETP
The two products, which launched on the London Stock Exchange (LSE) on Thursday, are designed to track the performance of fast-growing shares of business intelligence and software company MicroStrategy. These products stood out as the first physical equity-backed 3x leveraged ETPs tied to MicroStrategy stock.
There are also other MicroStrategy ETFs available, including one with 1.5x leverage as of August and the MicroStrategy ETF MSTX with 1.75x leverage.
“MicroStrategy has become a de facto steward of Bitcoin investing, while our MSTR ETPs enable investors to effectively leverage their cryptocurrency prospects.” – Oktay Kavrak, Leverage Shares Strategy and Communications Director
Attractiveness of MicroStrategy with Bitcoin Strategy
This launch of Leverage Shares demonstrates the appetite for a MicroStrategy-powered product. MicroStrategy has attracted a lot of attention since adopting Bitcoin as a financial reserve strategy and has been buying Bitcoin continuously over the last four years.
The company has a total of 252,220 BTC with the last 7,420 BTC purchases. These Bitcoins were purchased with proceeds from a multi-billion dollar convertible senior bond issuance. MSTR stock gained significant value thanks to these purchases.
MSTR attracted attention with an increase of 1,363% in the last 1525 days, outperforming all companies in the S&P 500. BTC price rose less than 13 times during the same period, but the company has increased its price 13 times since it started accumulating BTC in 2020. The new ETPs could provide additional gains to MSTR stock, which is currently up 9% at $166.76. Likewise, those who short ETP in case of a 1% decrease can also gain 3 percent from the MSTR decrease.
“We do not expect the products to gain the same traction in the UK and EU as they do in the US.” – Eric Balchunas, Senior Bloomberg ETF Analyst
Leverage Shares’ new ETP launch enables the expansion of crypto-focused product alternatives in Europe and the UK. The issuer company has launched a total of 162 ETPs so far. This strategy could solidify Leverage Shares’ position in the market.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
