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Leveraged anti-strategy ETFs are experiencing significant growth as shares in the bitcoin holder decline.
Leveraged anti-Strategy ETF reaches record high. (Benfe/Pixabay)
Key points:
- Graniteshares’ leveraged anti-strategy ETF has climbed to unprecedented levels, yielding substantial returns for those betting against MSTR.
- Shares of Strategy have plummeted to their lowest point since September 2024.
There’s always a bull market somewhere.
Despite the decline in bitcoin and the shares of bitcoin holder Strategy, an exchange-traded fund designed to inversely track MSTR and amplify its daily changes has achieved a record high.
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The exchange-traded fund in question is the GraniteShares 2x Short MSTR Daily ETF, which trades under the ticker MSDD on Nasdaq. It is an actively managed fund designed to achieve -200% of the daily performance of Strategy. In straightforward terms, if MSTR declines by 2% in a day, the ETF aims for a 4% increase on that same day (before fees/decay).
This fund launched on January 10, 2025, and is regarded as a high-risk short-term tactical instrument for those wagering against MSTR. It has proven to meet expectations.
MSDD’s price reached an all-time high of $114 on Tuesday, marking a 13.5% increase for the year, following a remarkable 275% rise over the previous year, according to data from TradingView.
MSDD’s counterpart, the Defiance Daily Target 2x Short MSTR ETF (SMST), also reached an 11-month peak of $113 on Tuesday. This fund was introduced on Nasdaq in August 2024.
In essence, MSTR bears who invested in these ETFs have realized significant gains.
Strategy fell to $126 on Tuesday, its lowest level since September 2024, extending its prolonged bear market. The stock is now down an astonishing 76% from its all-time high of $543 in November of the previous year.
Strategy is recognized as the largest publicly traded bitcoin holder globally, holding 713,502 BTC (valued at $54.24 billion) at the time of reporting. Consequently, its share price typically mirrors fluctuations in bitcoin’s market value.
Bitcoin, the predominant cryptocurrency by market capitalization, has decreased by 12% this year and traded as low as $73,000 on Tuesday, marking the most significant drop since late 2024. Since then, prices have rebounded to $76,000, aided by a narrowly approved funding package that mitigated immediate U.S. shutdown risks and improved risk sentiment in financial markets.
