The MicroStrategy ETF MSTX is the most volatile ETF in the United States, with a robust trader base eager to ride the volatility.
The newly launched leveraged MicroStrategy ETF (MSTX) by Defiance Investments has quickly gained popularity, with trading volumes surging for the second consecutive day post-launch.
This indicates that traders are capitalizing on the ETF’s volatility to Wall Street.
MicroStrategy ETF MSTX Trading Volumes Surge
Eric Balchunas, Bloomberg’s ETF Strategist, pointed out the strong performance of the MicroStrategy ETF, noting that it achieved impressive trading volumes within just two days of its launch.
On its second trading day, MSTX saw $34 million in trading activity, surpassing its first-day figures and outperforming other ETFs like $NVDL, which experienced much lower activity in its early days.
Balchunas also speculated on the factors driving MSTX’s rapid growth, suggesting it could be linked to Bitcoin or that volatility-seeking traders fuel the initial interest. He added, “We’ll find out the answer in time.”
Historically, major investors have used MicroStrategy as a proxy for Bitcoin investments, particularly when regulated instruments like spot Bitcoin ETFs were not available in the market.
Although MSTX is currently the most volatile ETF in the U.S., it’s still less extreme than the 3x MicroStrategy ETF ($3LMI LN) in Europe.
The $3LMI LN ETF has a 90-day volatility record of over 350%, outpacing many other volatile ETFs.
Balchunas mentioned that this European 3x leveraged MicroStrategy ETF stands out on the “wild” ETF charts, with volatility levels that make even riskier funds appear tame in comparison.
MSTR Stock In Demand
MicroStrategy stock has seen high demand among major market players, particularly due to its strong performance relative to Bitcoin since the start of 2023.
South Korea’s National Pension Fund recently acquired exposure to MSTR stock in the second quarter of this year, reflecting confidence in the company’s growth and Bitcoin adoption strategy.
Year-to-date, MSTR stock has achieved a 92% gain, outpacing Bitcoin’s 35% increase in 2024.
