MicroStrategy ETF MSTX Sees Strong Trading Volumes As Traders Enjoy Volatility

As a seasoned researcher with a background in finance and a keen eye for market trends, I find myself intrigued by the rapid success of the MicroStrategy ETF MSTX. The trading volumes have been nothing short of phenomenal, surpassing even the expectations set by other established ETFs. This is reminiscent of the dot-com bubble days when the market was abuzz with excitement and speculation.


The Defiance Investments-backed ETF, MicroStrategy Leveraged (MSTX), has experienced rapid popularity since its debut, with daily trading volumes increasing significantly for two days in a row. This suggests that traders find the volatility offered by this ETF appealing on the New York Stock Exchange.

MicroStrategy ETF MSTX Trading Volumes Surge

Eric Balchunas, Bloomberg’s ETF Strategist, pointed out that the Microstrategy ETF has shown remarkable performance since its launch, with significant trading volumes being recorded within just two days. Notably, on its second day of trading, MSTX saw a whopping $34 million in activity, exceeding its opening day numbers and even surpassing other ETFs such as $NVDL, which had minimal initial activity.

As an analyst, I find myself remarking on the impressive early success of Defiance’s latest venture. Today alone, shares of $MSTX have traded an astounding $34 million, surpassing its initial Day One figure significantly. To put this into perspective, Novadiscover ($NVDL), a company that currently boasts a market cap of $5 billion, only managed to trade 1/100th of this amount in its first two days. This suggests that we might be witnessing another ‘f everything, we’re doing five blades’ type launches, where the market response is overwhelmingly positive and swift.

— Eric Balchunas (@EricBalchunas) August 16, 2024

Additionally, Balchunas proposed potential explanations for MSTX’s swift response, hinting at a possible link between MSTX and Bitcoin, or merely speculative volatility-seeking traders igniting the initial buzz. He suggested that the truth would eventually be revealed.

For many years, large entities have utilized MicroStrategy as a surrogate method of wagering on Bitcoin, since market-available options such as spot Bitcoin ETFs hadn’t been created yet.

Although MSTX is the most volatile ETF currently in the United States, it pales in comparison to the 3x MicroStrategy ETF ($3LMI LN) in Europe. The $3LMI LN holds the track record of 90-day volatility of over 350%, surpassing a large number of other volatile ETFs in the market. Balchunas stated that the European 3x leveraged MicroStrategy ETF has stood out in ETF “wild” charts, with volatility levels that make typical riskier funds look tame by comparison.

MSTR Stock In Demand

Since early 2023, there’s been significant interest among major market investors in MicroStrategy’s stock due to its superior performance compared to Bitcoin. Notably, South Korea’s National Pension Fund decided to invest in MicroStrategy (MSTR) during the second quarter of this year, demonstrating their faith in the company’s potential growth and their strategic approach to Bitcoin adoption.

In the year 2024, MicroStrategy’s (MSTR) shares have surged by a remarkable 92%, outperforming Bitcoin’s growth of 35% during the same period.

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2024-08-17 12:04