Leverage Shares, a pioneering Exchange Traded Product (ETP) issuer, has chosen to expand its offerings to include MicroStrategy ETF 3X Leverage ETF. Noteworthy, the firm is interested in both the long and short version of the product.
Leverage Shares Takes a Leap With MSTR
The two products which went live on the London Stock Exchange (LSE) on Thursday, are designed to track the performance of MSTR, the fast-growing share of business intelligence and software company MicroStrategy. It is worth noting that these are the first ever physically-backed 3x leveraged ETPs tied to the MicroStrategy stock.
However, there are other MicroStrategy ETFs including the 1.5x leverage from August and the MicroStrategy ETF MSTX offering 1.75x leverage.
Surely, the launch is a strategy for Leverage Shares to solidify its position as one of the leading ETP issuers in Europe and in the United Kingdom. So far, it has amassed a total of 162 ETPs. Oktay Kavrak, Director of Strategy and Communications at Leverage Shares, noted that
“With MicroStrategy becoming a de facto proxy for Bitcoin investing, our MSTR ETPs enable traders to leverage their cryptocurrency outlook efficiently.”
On the other hand, Senior Bloomberg ETF Analyst Eric Balchunas does not believe that the products will be appreciated in the UK and the EU as it turned out in the United States. Moreso, his opinion seem to find support in the fact that fact that many Americans have shown tremendous support to ETPs over time. This includes the newly launched spot Bitcoin and Ethereum ETFs.
MicroStrategy Inc’s Attractiveness With its Bitcoin Pivot
Aside the interest to expand its offerings, Leverage Shares’ decision to pursue this launch underscores its confidence in a MicroStrategy-backed product. Generally MicroStrategy has been gaining a lot of attention since it opted for Bitcoin as its treasury reserve strategy. In the last four years, the Michael Saylor-led firm has purchased Bitcoin consistently.
Currently, the firm holds a total of 252,220 BTC after a recent purchase of 7,420 Bitcoin. This was acquired with proceeds from a private issuance of $1.01 billion in Convertible Senior Notes. The MSTR stock has benefited significantly from these frequent BTC acquisitions.
MSTR has successfully outperformed all companies on the S&P 500. With a 1,000% surge, MSTR has outperformed BTC and the S&P 500 which have surged by 425% and 70%, respectively. The newly launched ETPs could bring additional gain to the MSTR stock which is up 9% to $166.76.
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