Leveraged ETFs See Record Trading as MSTR Tests 200-Day Moving Average
Trading volume in both bullish and bearish leveraged ETFs tied to Strategy (MSTR) surged on Monday as the bitcoin-heavy firm’s stock fell to its 200-day simple moving average (SMA).
Defiance’s 2x leveraged long MSTR ETF (MSTX) saw a record 24.33 million shares trade hands, with its price plummeting 32% to $17.90—the lowest since September—according to TradingView data. The fund aims to deliver twice the daily return of Strategy’s share price, formerly known as MicroStrategy.
At the same time, the inverse 2x short MSTR ETF (SMST) recorded 51.21 million shares in volume, its highest since Nov. 24. This ETF is designed to provide twice the inverse daily performance of Strategy’s stock. Net inflow data for both funds is yet to be released.
MSTR dropped 16.6% on Monday, revisiting late February’s low of $231.62 as broader markets struggled amid U.S. recession fears and a strengthening Japanese yen. Since its peak at $543 on Nov. 21, the stock has declined by 55%.
As the largest publicly traded bitcoin holder, Strategy currently owns 499,096 BTC—valued at $40.4 billion. The company has aggressively accumulated bitcoin, leveraging debt sales to fund purchases.
On Monday, Strategy announced a $21 billion at-the-market (ATM) offering of its Series A preferred stock (STRK), with proceeds primarily allocated toward further bitcoin acquisitions.
