The Defiance Daily Target 2X Long MSTR ETF (MSTX), an exchange-traded fund that aims to deliver double the daily return of MicroStrategy (MSTR), surged by 5.05% in after-hours trading on Tuesday.
The ETF's rally is closely tied to the soaring popularity of MicroStrategy, a data-analytics and software company that is the largest corporate Bitcoin holder. MicroStrategy's stock has gained over 500% this year, outpacing Bitcoin's 123% rise, as investors embrace the company's aggressive bet on the cryptocurrency.
Analysts attribute the enthusiasm for MicroStrategy to the perceived influence of its executive chairman, Michael Saylor, who is widely regarded as a Bitcoin guru among crypto enthusiasts. As of November 25, MicroStrategy held 386,700 Bitcoin, valued at about $37 billion, reflecting the company's deep commitment to the digital asset.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.