Leverage Shares debuts 3x leveraged MicroStrategy ETPs in Europe

Leverage Shares launches the first leveraged and inverse stock-traded product tied to the performance of MicroStrategy stock.

These new investment products, which have begun trading on the London Stock Exchange, include the 3x Long MicroStrategy exchange-traded product (symbol ‘$MST3’) and the 3x Short MicroStrategy exchange-traded product (symbol ‘$MSTS’).

For investors unfamiliar with ETPs, they are financial instruments that track the performance of an asset, such as stocks (in this case, MicroStrategy’s stock).

The 3x long-term exchange-traded product allows investors to triple the gains (or losses) on MicroStrategy stock, while the -3x short-term exchange-traded product allows investors to profit with three times the leverage if the stock declines in value.

LeverageShares is launching new 3x Microstrategy ETFs in Europe (they won’t appreciate the unbridled adrenaline rush packed in here like Americans do). These things will have about 18-20 times the volatility of the SPX. They’ll make the 3x QQQ look like a money market fund picture.twitter.com/DYM4x2O7l9

— Eric Balchunas (@EricBalchunas) September 26, 2024

Microstrategy is known for its extensive Bitcoin (BTC) holdings. On September 20, MicroStrategy announced that it purchased an additional 7,420 Bitcoins worth over $458 million at an average price of $61,750 per Bitcoin. The company also reported a 5.1% quarter-to-date and 17.8% year-to-date total Bitcoin return.

As of September 20, their total holdings reached 252,220 Bitcoins.

Indirect Bitcoin trading

Leverage Shares’ move offers investors a way to indirectly leverage their exposure to Bitcoin by investing in these exchange-traded products that are tied to MicroStrategy’s performance. According to Oktay Kavrak, Leverage Shares’ Director of Strategy and Communications, the launch allows investors to “efficiently leverage their exposure to cryptocurrencies” to increase potential returns or hedge against market volatility, as stated in the company’s social media post.

The reference indices for these products are provided by the European stock exchange group Euronext.

These exchange-traded products offer European investors a new way to access the highly volatile world of cryptocurrency-related investments, with leverage that can be 18-20 times more volatile than standard market indices such as the S&P 500.