Leverage Shares Expands European Reach With 3x MicroStrategy ETFs

• Leverage Shares introduced 3x MicroStrategy ETFs on the LSE, offering high volatility and exposure to MicroStrategy’s Bitcoin-driven stock.
• These new ETFs offer both long and short positions, allowing traders to leverage their outlook on MicroStrategy’s performance.
• MicroStrategy’s substantial Bitcoin holdings make its stock a popular choice for investors seeking leveraged exposure to crypto.

Eric Balchunas, Bloomberg’s senior ETF analyst, highlighted on X (formerly Twitter) the latest move from Leverage Shares; the Exchange Traded Product (ETP) issuer introduced its new 3x MicroStrategy ETFs in Europe.

These ETFs, launched on the London Stock Exchange (LSE), promise high volatility, offering around 18-20 times that of the S&P 500 index. Balchunas observed that while Americans might embrace these high-risk products, European investors may not react the same way.

Leverage Shares’ New MSTR ETFs Offer 3x Leverage

Leverage Shares unveiled both long and short versions of the MicroStrategy ETF, which provides three times the leverage. These products aim to track the performance of MSTR, the stock of MicroStrategy, a business intelligence and software company that has gained prominence due to its focus on Bitcoin. This marks the first-ever physically backed 3x leveraged ETP tied to MicroStrategy’s stock.

However, other leveraged MicroStrategy ETFs exist, such as the 1.5x leverage product from August and the 1.75x leverage ETF (MSTX). Leverage Shares’ latest addition solidifies its growing presence, with 162 ETPs in total.

Leverage Shares’ European Expansion Strategy

The launch of the 3x MicroStrategy ETFs is part of Leverage Shares’ strategy to strengthen its position as one of the leading ETP issuers in Europe and the United Kingdom. Additionally, the firm seems confident that these products will appeal to traders who are looking to maximize their exposure to MicroStrategy, especially given its Bitcoin holdings.

Oktay Kavrak, Director of Strategy and Communications at Leverage Shares, explained the connection between MicroStrategy’s stock and Bitcoin investments. Kavrak stated that with MicroStrategy becoming a de facto proxy for Bitcoin investing, the MSTR ETPs allow traders to leverage their cryptocurrency outlook efficiently.

MicroStrategy’s Bitcoin Pivot

In the last four years, MicroStrategy has kept buying BTC to adopt it as part of its treasury reserve strategy. The company now holds 252,220 BTC since acquiring 7,420 more Bitcoins through a private issuance of $1.01 billion in Convertible Senior Notes. These acquisitions have greatly benefited MicroStrategy’s stock (MSTR).

The firm’s consistent Bitcoin purchases, led by Michael Saylor, have attracted investors and fueled interest in products like the MSTR 3x leveraged ETF. MicroStrategy’s shift to Bitcoin has made its stock a popular choice for investors seeking exposure to the cryptocurrency market.

Read also: Michael Saylor’s Bitcoin-Leveraged Strategy Transforming $1 Income to $400M Profit

Leverage Shares’ decision to launch this product reflects the growing interest in both cryptocurrency and leveraged investment products. However, as Balchunas pointed out, the high volatility might be better suited to American traders who tend to embrace riskier investments than their European counterparts.