Defiance ETFs Launches MSTX

Defiance ETFs has launched MSTX, the first single-stock leveraged long exchange-traded fund (ETF) for MicroStrategy approved for trading in the U.S.

MSTX seeks to provide 175% long daily targeted exposure to MicroStrategy. According to a Thursday press release by Defiance ETFs, MicroStrategy’s stock (ticker: MSTR) is up about 98% this year and currently trades around $136 per share following a recent stock split.

The approval of the ETF by the Securities and Exchange Commission could provide greater leveraged exposure to bitcoin for U.S.-based traders. Defiance CEO Sylvia Jablonski stated, “As we introduce MSTX, our long leverage MicroStrategy ETF, we’re amplifying the potential for investors seeking long leveraged exposure to bitcoin. Given MicroStrategy’s inherent higher beta compared to bitcoin, MSTX offers a unique opportunity for investors to maximize their leverage exposure to the bitcoin market within an ETF wrapper.”

Defiance ETFs focuses on thematic and leveraged ETFs designed for traders seeking higher-risk, tactical opportunities. Their suite of ETF products includes funds targeting blockchain, artificial intelligence, machine learning, and quantum computing sectors.

MicroStrategy has a strategic focus on becoming one of the largest holders of bitcoin. The company holds 226,500 bitcoin as of July 31, with an average purchase price of $35,158 per bitcoin, totaling a cost of $7.538 billion.

Spot Bitcoin ETFs Record Net Outflows on Wednesday

ETF inflows can significantly impact cryptocurrency price appreciation. U.S. spot bitcoin ETFs saw over $81.36 million in outflows on Wednesday, ending their two-day positive flow streak.

Grayscale’s GBTC reported the largest outflow at $56.87 million, followed by Fidelity’s FBTC with $18.05 million, Ark and 21Shares’ ARKB with $6.77 million, and Bitwise’s BITB with $5.78 million in outflows.

The only two funds recording inflows were BlackRock’s IBIT, with $2.68 million in net inflows, and Franklin’s EZBC, with $3.42 million in inflows, according to data from SosoValue.