As Bitcoin’s price continues to fluctuate wildly in the $60,000 range, investors are once again reminded of the inherent volatility associated with this digital currency. With Bitcoin’s mainstream adoption, investors and traders now have more options than ever to gain exposure to this exciting asset class. Gone are the days of being limited to buying and holding Bitcoin in dedicated crypto wallets or exchanges. Thanks to a combination of regulatory advancements and technological innovation, the world of crypto has become readily accessible within traditional brokerage accounts.
While many are focused on Spot Bitcoin ETFs, one of the most intriguing ways to capitalize on this opportunity involves listed companies that are aggressively adding Bitcoin to their balance sheets, such as MicroStrategy. MicroStrategy’s strategic decision to invest heavily in Bitcoin has directly linked its stock performance to the digital currency’s price swings. As a result, trading MicroStrategy shares effectively becomes a direct play on Bitcoin’s notorious volatility. This approach particularly appeals to traders seeking to capitalize on Bitcoin’s potential upside while simultaneously acknowledging its inherent risks, all within the established liquidity and regulatory framework of a NASDAQ-listed stock.
MicroStrategy’s own implied volatility presents an attractive feature for those seeking to benefit from rapid price changes in the crypto market, magnified by the company’s substantial Bitcoin holdings. With an average daily trading volume of 11 million shares in September, MicroStrategy stock provides ample opportunities for traders. Now, a pair of ETFs launched by REX Shares, which recently surpassed $5 billion in assets under management, in collaboration with ETF provider Tuttle Capital Management, offers a leveraged approach to playing MicroStrategy.
REX Shares and Tuttle Capital have introduced the industry’s only 2x/-2x ETFs for MicroStrategy: T-REX 2X Long MSTR Daily Target ETF (MSTU) and T-REX 2X Inverse MSTR Daily Target ETF (MSTZ). REX’s ETFs are the first of their kind to provide +200% and -200% exposure to MicroStrategy, reports REX Shares, opening up new possibilities for traders who closely monitor MSTR stock movements. Each of REX’s latest products gives investors a way to play both sides of the coin.
For example, the T-REX 2X Long MSTR Daily Target ETF was created for traders who are bullish on MSTR shares, providing the potential to amplify gains with +200% exposure to the stock’s daily movements. Conversely, the T-REX 2X Inverse MSTR Daily Target ETF offers 200% inverse exposure to MSTR, allowing traders bearish on MicroStrategy’s stock price to bet on its decline.
With the options market now open, investors can enhance their trading strategies by utilizing options to fine-tune their positions, hedge risk, or capitalize on market volatility, according to REX Shares. The combined opportunities presented by options trading, ETFs, and Bitcoin offer investors an array of avenues to navigate this dynamic and volatile market. To explore REX’s approach to trading, check out its product offerings here.
REX’s ETF Appeals To Bulls And Bears
Options provide traders with the opportunity to purchase contracts that grant them the right to buy or sell an asset, such as a stock or cryptocurrency, at a pre-set price within a specified timeframe. Options trading has become increasingly popular in the Bitcoin market, with monthly expiry amounts on BTC contracts ranging from $8 billion to $14 billion since Bitcoin’s most recent halving event.
Having recently introduced the first and only 2x leveraged MSTR ETFs to the market, REX Shares states that it will continue to innovate, offering sophisticated traders a chance to place leveraged wagers on Bitcoin, of which MicroStrategy owns over $9 billion worth as of September. Due to MicroStrategy’s commitment to owning Bitcoin, its stock often mirrors the volatility of the cryptocurrency itself.
Investors should be aware that trading these funds is not equivalent to investing directly into Bitcoin or MicroStrategy, requiring a higher level of portfolio management expertise. You can learn more about these ETFs and other trading products offered by REX Shares here.
