Odaily Planet Daily News: GraniteShares, an asset management company with AUM exceeding $10 billion, has submitted a new leveraged ETF application to track the stock prices of cryptocurrency related companies such as Riot Platforms, Marathon Digital, MicroStrategy, and Robinhood.
These funds will go long and short at the same time, and a 2-fold ETF will generate twice the daily return of the corresponding stock. For example, when the stock of Riot Platform rises by 1%, the GraniteShares 2x Long RIOT ETF will rise by 2%.
This year, as the cryptocurrency and stock markets reach historic highs, these leveraged ETFs have become very popular. Among them, the T-Rex 2x Long MSTR Daily Target Fund (stock code MSTU) attracted over $1.8 billion in managed assets. Similarly, the Defiance Daily Target 2X Long MSTR ETF (stock code MSTX) has accumulated assets of $1.8 billion.
These funds have performed better than MicroStrategy in the past three months, during which MicroStrategy's stock price has risen by 150%, while MSTU and MSTX have risen by 308% and 253% respectively.
However, the risk is that in bear markets, their performance is usually worse than the underlying stocks. MicroStrategy's stock has fallen by 24% in the past 30 days, while MSTU and MSTX have fallen by over 50% during the same period. （crypto.news）
