This ETF Will Double-Leverage MicroStrategy’s Already-Leveraged Exposure To Bitcoin, Offering Around 20X The Volatility Of The SPX

There are a plethora of ETFs for investors who are rather staid and risk-averse. And then there are a select few that cater to the veritable adrenaline junkies who live by the slogan You Only Live Once (YOLO), throwing every possible caution contained in Financial Investment 101 to the proverbial wind. As it happens, we might soon witness the launch of a holy-grail of sorts investment vehicle for just such investors: the T-Rex 2X Long MSTR Daily Target ETF that aims to double-leverage MicroStrategy's already-leveraged exposure to Bitcoin.

For the benefit of those who might not be aware, MicroStrategy is a data analytics company that has become famous for its leveraged holdings of Bitcoin. In fact, the MSTR stock now trades as a levered bet on Bitcoin itself.

Toward the end of June, the T-Rex Group filed an application with the SEC to launch the T-Rex 2X Long Daily Target ETF, which will aim to magnify MicroStrategy's daily gains or losses - mostly a function of Bitcoin's price action - by 200 percent. It is hardly a surprise, therefore, that this investment vehicle is expected to clinch the title of the most volatile ETF in the US, with the possibility of losing the entirety of one's principal if MSTR's stock price falls by over 50 percent in a single day.

The above X post highlights the T-Rex 2X Long MSTR ETF's expected 90-day volatility, which to no one's surprise, tops the list by a wide margin.

Where Goeth Bitcoin?

Meanwhile, as most of our readers would know by now, Bitcoin has had a rough couple of days, courtesy of the oncoming closure of the much-delayed Mt Gox saga.

As we noted recently in a dedicated post, the Mt Gox exchange had declared bankruptcy in 2014 after a devastating hack that resulted in a loss of around 850,000 BTC. In February 2023, some of the defunct exchange's largest creditors agreed to a Bitcoin- and Bitcoin Cash-denominated transfers before the 31st of October, 2024.

As per an agreement with Mt Gox trustees, five crypto exchanges, including Bitstamp, now have to distribute a specific proportion of the overall BTC- and BCH-denominated compensation.

As if this were not enough, the German government recently sold 5,000 Bitcoins from its stash of around 50,000 BTC seized during a raid on the pirated content website Movie2K.

On a longer time frame, however, Bitcoin still remains in an uptrend. Consider the fact that Bitcoin holders' current unrealized profit per coin is 8.2x larger than the corresponding unrealized loss per coin. According to Glassnode, "only 18% of trading days have recorded a larger relative value, all of which are within Euphoric bull market regimes."

About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.

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