Leveraged MicroStrategy ETFs tumble 81%-82% year-to-date to record lows
The 2x long products MSTX and MSTU are each down 82% in 2024, while MSTP has fallen 81%, leaving all three at their lowest levels since launch.
Summary
Leveraged exchange-traded funds tied to MicroStrategy have suffered steep losses this year, highlighting the amplified downside that comes with 2x long exposure. MSTX and MSTU are both down 82% year-to-date and are trading at their lowest levels since their 2024 debuts. MSTP, another 2x leveraged long MicroStrategy ETF, is down 81% and is also sitting at its lowest level referenced in the source. The move underscores how leveraged products can magnify declines as well as gains, particularly when sentiment around crypto-linked equities weakens.
Terms & Concepts
- leveraged ETF: Fund using borrowed exposure to amplify returns
- 2x long exposure: Targets twice the daily gain of an asset
- MicroStrategy ETF: Exchange-traded fund linked to MicroStrategy shares