REX Shares and Tuttle Capital launch 2X leveraged and inverse MicroStrategy ETFs

REX Shares and Tuttle Capital have partnered to launch two new exchange-traded funds offering 2X leverage and inverse exposure to MicroStrategy shares.

The asset managers announced the launch of the T-REX 2X Long MSTR Daily Target ETF and the T-REX 2X Inverse MSTR Daily Target ETF on September 18.

The new products, which will track the daily price of MicroStrategy stock and offer exposure to the company’s Bitcoin (BTC) bet, will trade on the CBOE under the ticker symbols MSTU and MSTZ.

The first 2x leveraged and inverse MSTR ETFs

REX and Tuttle Capital’s long and short MicroStrategy ETFs are entering the market following the launch of MicroStrategy-based asset manager Defiance ETF, a 1.75x leveraged ETF, in August. The Defiance ETF saw decent volume after its launch.

However, MSTU and MSTZ may receive more attention as they are the first ETFs to offer 200% leverage and -200% inverse exposure to MSTR stock.

Eric Balchunas, Bloomberg’s senior ETF analyst, says the REX/Tuttle MSTR ETF will outperform the Defiance ETF’s 1.75X MicroStrategy ETF. The Defiance product was an “instant hit,” but two new entrants are poised to deliver volatility that could surpass the SPX’s 15x.

Tuttle breaks the volatility barrier again today with the launch of 2x and -2x $MSTR ETFs that will exceed Defiance’s 1.75x MSTR (which was an instant hit) and provide volatility around 15x the SPX. It’s effectively a hot sauce arms race. pic.twitter.com/qIWo9KE29Z

— Eric Balchunas (@EricBalchunas) September 18, 2024

According to Greg King, CEO of REX Financial, the parent company of REX Shares, the 2X ETFs offer investors an opportunity to explore new ways to engage with MicroStrategy’s Bitcoin strategy. The company, which first purchased BTC in August 2020, is the largest institutional holder of the digital asset.

“The 2X Leveraged and 2X Inverse MSTR ETFs provide investors with unparalleled access to MicroStrategy’s Bitcoin exposure, whether they are looking to increase their potential gains or hedge against market volatility.”

Matt Tuttle, CEO of Tuttle Capital Management

Shares of MicroStrategy traded at around $1.34 as of 12:55 a.m. ET on September 18; its price is up 2.2% on the day and more than 95% year-to-date.

Meanwhile, BTC was trading around $59,851 at press time, largely unchanged over the past 24 hours and up 35.4% year-to-date.