Defiance’s Leveraged ETFs Experience Record Trading Volumes Amid MSTR Decline
Defiance's leveraged Strategy (MSTR) ETFs experienced increased trading on Monday due to a decline in the bitcoin (BTC)-holding firm's shares.
- 24.33 million shares of the Defiance daily target 2x long MSTR ETF (MSTX) traded, with the price dropping 32% to $17.90.
- This is the lowest price since September, as the ETF aims for 200% of the daily percentage change in Strategy's share price.
- Trading volume for the Defiance daily target 2x short MSTR ETF (SMST) reached 51.21 million, the highest since November 24.
- MSTR shares fell 16.6% to revisit its 200-day simple moving average at $231.62, marking a 55% drop from the peak of $543 on November 21.
- The decline coincided with concerns over a U.S. recession and a stronger Japanese yen.
- Strategy holds 499,096 BTC valued at approximately $40.4 billion, making it the largest public-listed bitcoin holder.
- The company announced a $21 billion at-the-market offering of Series A preferred stock (STRK), primarily for additional BTC purchases.