Leverage Shares has launched the first leveraged and inverse exchange-traded product tied to the performance of MicroStrategy stock.
These new investment products, now available on the London Stock Exchange, include the 3x Long MicroStrategy exchange-traded product (ticker symbol â$MST3â) and the 3x Short MicroStrategy exchange-traded product (ticker symbol â$MSTSâ).
For investors unfamiliar with ETPs, they are financial instruments that track the performance of an asset, such as stocks â in this case, MicroStrategyâs stock.Â
The 3x long exchange-traded product allows investors to triple the gains (or losses) of MicroStrategyâs stock, while the -3x short exchange-traded product lets investors profit if the stockâs value falls, with triple leverage.
Microstrategy is known for its extensive Bitcoin (BTC) holdings. On Sept. 20, MicroStrategy announced it had purchased an additional 7,420 Bitcoin for over $458 million at an average price of $61,750 per Bitcoin. The company also reported a total Bitcoin yield of 5.1% quarter-to-date and 17.8% year-to-date.
As of Sept. 20, their total holdings reached 252,220 Bitcoin.
Indirect Bitcoin trading
This move by Leverage Shares offers investors a way to leverage their outlook on Bitcoin indirectly by investing in these exchange-traded products tied to MicroStrategyâs performance. According to Leverage Sharesâ Director of Strategy and Communications, Oktay Kavrak, this launch allows traders to âleverage their cryptocurrency outlook efficiently,â either to amplify potential returns or to hedge against market volatility, as noted in the companyâs social media post.
Euronext, a European stock exchange group, provides the benchmark indices for these products.
These exchange-traded products introduce a new way for European investors to access the highly volatile world of cryptocurrency-related investments, with leverage that could be 18-20 times more volatile than standard market indexes like the S&P 500.