ETF that feasts on carnage in bitcoin-holder Strategy hits record high
TL;DR
GraniteShares' leveraged anti-Strategy ETF (MSDD) hit a record high as Strategy shares fell to their lowest since September 2024, benefiting bears betting against the bitcoin holder. The ETF aims to double MSTR's daily decline, with MSDD up 13.5% this year and 275% over the past year. Bitcoin's drop contributed to Strategy's 76% fall from its peak.
What to know:
- Graniteshares' leveraged anti-strategy ETF has surged to record highs, generating solid returns for MSTR bears.
- Strategy shares tanked to their lowest since September 2024.
- Graniteshares' leveraged anti-strategy ETF has surged to record highs, generating solid returns for MSTR bears.
- Strategy shares tanked to their lowest since September 2024.
There's always a bull market somewhere.
While bitcoin and shares of bitcoin holder Strategy are falling, an exchange-traded fund designed to move in the opposite direction of MSTR and double its daily change has hit a record high.
That exchange-traded fund is the GraniteShares 2x Short MSTR Daily ETF, trading under the ticker MSDD on Nasdaq. It is an actively managed fund designed to deliver -200% of the Strategy's daily performance. In simple terms, if MSTR falls 2% in a day, the ETF targets a 4% gain that same day (before fees/decay).
The fund debuted on Jan. 10, 2025 and is seen as a high-risk short-term tactical tool for bears betting against MSTR. And it has lived up to its repute.
MSDD's price hit a record high of $114 on Tuesday, up 13.5% on the year, extending the past year's 275% surge, according to data source TradingView.
MSDD's compatriot, the Defiance Daily Target 2x Short MSTR ETF (SMST), also clocked an 11-month high of $113 on Tuesday. This fund debuted on Nasdaq in August 2024.
In other words, MSTR bears out there who loaded up on these ETFs have made a killing.
Strategy fell to $126 on Tuesday, the lowest since September 2024, extending its multi-month bear market. The stock is now down a staggering 76% from its lifetime high of $543 in November last year.
Strategy is the world's largest publicly listed bitcoin holder, stashing 713,502 BTC ($54.24 billion) at press time. Naturally, its share price tends to follow swings in bitcoin's market value.
Bitcoin, the leading cryptocurrency by market value, has dropped 12% this year and traded as low as $73,000 on Tuesday. That was the weakest since late 2024. Since then, prices have bounced back to $76,000, thanks to narrowly approved funding package that alleviated near-term U.S. shutdown risk and stabilized risk sentiment in financial markets.