Wall Street Just Got Its Most Volatile ETF as Risky Bets Boom
- MicroStrategy 1.75x leveraged ETF is most volatile in US: BI
- More issuers looking to push the envelope, says BI’s Balchunas
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In a part of the US market for exchange-traded funds that has become known for increasingly risky products, a new offering has debuted that stands out in the crowd.
Defiance, a $1.4 billion asset manager, on Thursday launched the Defiance Daily Target 1.75X Long MSTR ETF under the ticker MSTX. The fund looks to offer daily leveraged returns on MicroStrategy Inc. The stock, which has been seen as a Bitcoin proxy because of the company’s holdings of the digital token, has a 90-day volatility of about 97%. That would likely make the new ETF the most volatile in the US, according to Bloomberg Intelligence.