Leverage Shares, a prominent provider of Exchange Traded Products (ETPs), has broadened its offerings by introducing a new 3X Leveraged ETF focused on MicroStrategy. This addition aligns with the company’s interest in products featuring both long and short positions. Given the long-standing view of MicroStrategy (MSTR) shares as a Bitcoin ETF, this move is strategic. Michael Saylor, MicroStrategy’s leading figure, has been actively promoting MSTR as a leveraged Bitcoin stock, further highlighting its appeal.
What Makes the New ETP Stand Out?
On Thursday, two innovative products debuted on the London Stock Exchange, designed to mirror the performance of the fast-growing MicroStrategy. These are the inaugural physically-backed 3x leveraged ETPs tied to MicroStrategy stock, distinguishing them in the marketplace. Additionally, the selection of MicroStrategy ETFs includes options with 1.5x and 1.75x leverage, available since August.
Why Is MicroStrategy Attracting Interest?
The introduction of this product by Leverage Shares underscores strong market interest in MicroStrategy-backed offerings. MicroStrategy has made waves since it began using Bitcoin as a treasury reserve, engaging in continuous Bitcoin acquisitions over the past four years. Most recently, it added 7,420 BTC, bringing its total holdings to 252,220 BTC. These purchases were funded through billions raised via convertible senior bonds, leading to significant appreciation in MSTR shares.
Key insights from this development include:
- MSTR shares have skyrocketed by 1,363% over the past 1,525 days, outperforming the entire S&P 500.
- Despite Bitcoin’s price rising by less than 13 times, MicroStrategy’s stock valuation has increased 13 times since it began accumulating BTC in 2020.
- The newly launched ETPs could further enhance the value of MSTR shares, currently priced at $166.76 with a recent 9% increase.
- Investors holding the short ETP might achieve a 3% return from a drop in MSTR stock value.
Leverage Shares’ launch of new ETPs marks a significant step in expanding cryptocurrency-focused investment products within Europe and the UK. With a total of 162 ETPs now offered, the company is poised to strengthen its market position, catering to the growing demand for innovative financial instruments linked to emerging asset classes like Bitcoin. This strategic expansion reflects the evolving landscape of investment opportunities.
