T Rex Group Proposes 2x Long, Inverse Microstrategy ETF

T Rex Group Proposes for 2x Long, Inverse Microstrategy ETF

T Rex Group Proposes– T-Rex Group, an ETF issuer, has filed for a new ETF that will take a 2x long position in MicroStrategy (MSTR), which heavily holds bitcoin (BTC). According to a filing on the Securities and Exchange Commission’s EDGAR platform, the T-Rex 2X Long MSTR Daily Target ETF aims to achieve 200% of MicroStrategy’s daily performance.

Additionally, T-Rex also submitted an application for an ETF that would take a 2x inverse position in MSTR. These ETFs are designed to provide leveraged long or short exposure to bitcoin through MicroStrategy, known for its high volatility due to its significant bitcoin holdings. Currently, the stock’s implied volatility is 85.6%, trending lower compared to recent averages, amid stable bitcoin prices.

MicroStrategy’s CEO, Michael Saylor, recently announced plans to offer $500 million in convertible notes to increase the company’s bitcoin holdings. Bloomberg ETF analyst Eric Balchunas commented that these proposed ETFs could potentially be the most volatile ever seen in the U.S., with volatility expected to be 20 times higher than the SPX.

They will be the ghost pepper of ETF hot sauce, he remarked. ETF issuers Defiance and GraniteShares have also introduced products that short MicroStrategy (MSTR). In addition to these, T-Rex filed for six leveraged inverse bitcoin ETFs in March, ranging from 1.5x to 2x positions.

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