The T-Rex 2X Long MSTR Daily Target ETF (MSTU) plunged 13.78% in pre-market trading on Monday, following reports that the U.S. government is considering creating a digital asset reserve that may include various cryptocurrencies and altcoins alongside Bitcoin.
The ETF, which aims to provide 2x leveraged exposure to the daily performance of MicroStrategy (MSTR), a company that holds a significant amount of Bitcoin, was likely impacted by concerns over the potential impact of the U.S. digital asset reserve on Bitcoin's dominance and future role in the global financial system.
While MicroStrategy co-founder Michael Saylor hinted at plans for another Bitcoin purchase on January 27, bringing the company's total holdings to over $48 billion, the news of the potential U.S. digital asset reserve sparked mixed reactions within the Bitcoin community. Some experts warned that the inclusion of altcoins in the reserve could dilute Bitcoin's dominance, while others expressed concerns over the potential inflationary impact of including non-deflationary assets alongside Bitcoin.
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.