GraniteShares submits application for leveraged ETF of crypto-related companies including MicroStrategy

CoinRank News: GraniteShares, an asset management company with over $10 billion in AUM, has filed for new leveraged ETFs to track the stock prices of crypto-related companies such as Riot Platforms, Marathon Digital, MicroStrategy and Robinhood. These funds will go long and short at the same time, and a 2x long ETF will generate twice the daily returns of the corresponding stocks. For example, when Riot Platforms stock rises 1%, the GraniteShares 2x Long RIOT ETF will rise 2%. This year, these leveraged ETFs have become very popular as cryptocurrency and stock markets have risen to all-time highs. Among them, the T-Rex 2x Long MSTR Daily Target Fund (ticker MSTU) has attracted more than $1.8 billion in assets under management. Similarly, the Defiance Daily Target 2X Long MSTR ETF (ticker MSTX) has accumulated $1.8 billion in assets. These funds have outperformed MicroStrategy in the past three months, during which MicroStrategys stock price has risen 150%, while MSTU and MSTX have risen 308% and 253%, respectively. The risk, however, is that in a bear market, they typically perform worse than the underlying stocks. MicroStrategy stock is down 24% in the past 30 days, while MSTU and MSTX are down more than 50% in the same period. (crypto.news)