The leveraged Microstrategy ETF has achieved a 260% gain in just over a month since its launch.

The 2x MicroStrategy ETF (MSTU), launched by T-Rex, has caused quite a stir, giving investors a wild ride with intense exposure to Michael Saylor’s Bitcoin-loving company. In just a little over a month, the fund’s return has already hit around 260%—not exactly a shy debut!

Bloomberg ETF strategist Eric Balchunas had some fun with the math, estimating that if this trend holds, the annual growth rate would clock in at a jaw-dropping 57,000%! Yes, you read that right. This mind-boggling figure highlights the force behind MicroStrategy’s bold approach to Bitcoin, which began back in 2020 and has since outpaced even Bitcoin’s own price gains.

Just recently, on October 28, MicroStrategy’s stock hit a new record of $250, underscoring the power of an audacious bet on Bitcoin that’s paid off in spades on the market stage.

Microstrategy ETF has surpassed $1 billion in assets under management (AUM)

With a daily trading volume exceeding $500 million, the MSTU ETF has entered the top 1% in transaction volumes. Operating with a 2x leverage on MicroStrategy shares, the fund has attracted attention from investors seeking potentially high returns, driving its impressive performance.

In addition to this high volume, MSTU’s AUM has now exceeded MicroStrategy’s original ETF, which offers up to 1.75x leverage. Analyst Eric Balchunas notes that MSTU behaves similarly to a Bitcoin ETF but with an effective 4x leverage, providing an exposure level that goes beyond typical ETF volatility.

Comparatively, MSTU’s 30-day volatility reached 168%, significantly higher than BlackRock’s Bitcoin ETF, IBIT, at 41%. Balchunas highlighted that MSTU’s Bitcoin exposure might exceed what U.S. regulations typically allow. Since MicroStrategy stock is already leveraged on Bitcoin, MSTU amplifies this risk further.

By doubling $MSTR exposure (already leveraged 2x on Bitcoin), MSTU has become a unique, highly attractive trading tool for investors seeking high risk and return.

What about MSTU’s future projections?

The MSTU ETF, a 2x leveraged fund based on MicroStrategy (MSTR) stock, has shown remarkable growth, with projections indicating a substantial potential for further gains. According to recent forecasts, MSTU could reach up to $455.99 within a year, driven by its unique leverage structure that amplifies exposure to Bitcoin indirectly through MicroStrategy’s stock. This makes MSTU particularly appealing to high-risk investors looking to capitalize on Bitcoin’s volatility without direct crypto exposure.

Analysts highlight MSTU’s high volatility—up to 168% over the past month—compared to more traditional ETFs, such as BlackRock’s Bitcoin ETF (IBIT) with 41% volatility. This extreme volatility results from MSTU’s compounded leverage, effectively providing a 4x exposure on Bitcoin through MicroStrategy’s holdings. As Bitcoin and MicroStrategy stock prices fluctuate, MSTU’s potential gains (or losses) could remain high, attracting traders with a high risk tolerance.

Overall, the fund’s performance and future projections reflect strong interest among investors eager for leveraged exposure to Bitcoin. However, given its volatility, MSTU might not align with conservative investment strategies, and prospective investors should carefully consider their risk appetite before diving in.

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Margharet Tess

Editor, Developer at Cryptheory Labs

I have been active in the cryptocurrency world for over 6 years, during which I have written countless articles about this sector. What fascinates me most about cryptocurrencies is their technological aspect and the problems they aim to solve. In the past three years, I have ventured into app development and am currently working on a larger project called P2E Buzzer. Stay tuned for the surprise. 🙂 My previous experiences: Business2Community.com, TradingPlatforms.com

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