Financial services firm T-Rex Group has filed for a leveraged MicroStrategy (MSTR) exchange-traded fund in the United States. This ETF could potentially be the most volatile ETF ever seen in the country.
Read on to learn what experts think about this development and to do an in-depth comparative analysis!
What Experts Think About T-Rex Group’s MSTR?
Eric Balchunas, a Bloomberg ETF analyst, likened MSTR to the ‘ghost pepper’ of ETFs for its extreme volatility. He stated that this fund could expose investors to around 20 times the typical volatility of the S$) 500.
He compared it to a three-time-leveraged MicroStrategy ETF currently in the European market, which makes the QQQ index appear as stable as a money market fund.
Crypto ETF Landscape: A General Overview
As of June 28, 2024, the total assets under management of crypto ETFs stand at $51.52 billion, with a net flow of +$11.8 million.
The total market cap of Bitcoin Futures ETFs is $2.28 billion, with a 24-hour trading volume of $122.23 million. ProShare’ BITO is the top Bitcoin Futures ETF by AUM at $598.78 million, followed by VanEck’s XBTF with $42.41 million. BITO has a 20-day volatility of 43.37% and a 200-day volatility of 56.77%.
In the Bitcoin Spot ETF market, the total market cap is $76.14 billion, with a 24-hour trading volume of $892.44 million. Grayscale’s GBTC is the leading Bitcoin Spot ETF with an AUM of $24.33 billion, followed by BlackRock’s IBIT at $17.24 billion. GBTC’s 20-day volatility is 41.61%, while its 200-day volatility is 55.78%. IBIT has a 20-day volatility of 41.56% and a 200-day volatility of 56.04%.
Ethereum Futures ETFs have a total market cap of $285.74 million and a 24-hour volume of $11.43 million. Bitwise’s BITW is the top Ethereum ETF by AUM at $478 million, with Valkyrie’s BTF following at $25.93 million. BTF’s 20-day volatility is 40.88%, and its 200-day volatility is 56.18%.
In conclusion, the potential approval of T-Rex Group’s leveraged Microstrategy ETF could set new standards for volatility in the ETF market. This fund would offer investors access to an unprecedented level of risk and potential rewards, making it a significant development to watch.
Also Read: Matt Hougan Shares the Timeline for Solana and XRP ETF
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