MicroStrategy ETF MSTX Sees Strong Trading Volumes Amid Market Volatility

• MSTX sees $34M trading activity in just two days, surpassing other new ETFs.
• MSTX’s early success linked to Bitcoin volatility and limited spot ETF options.
• MSTR stock gains 92% YTD, drawing major investors like South Korea’s Pension Fund.

The newly launched leveraged MicroStrategy ETF MSTX by Defiance Investments has quickly captured attention in the trading community, with substantial trading volumes recorded within just two days of its debut. Traders seem to be capitalizing on the volatility that MSTX introduces to Wall Street, driving significant activity in the market.

In its initial days, the MicroStrategy ETF MSTX saw a notable surge in trading volumes, marking a strong entry into the market. Bloomberg’s ETF Strategist Eric Balchunas highlighted the fund’s early performance, emphasizing that MSTX achieved impressive trading volumes within just two days. On the second day alone, the ETF recorded $34 million in trading activity, surpassing its first-day figures. 

This level of trading activity has outpaced other newly launched ETFs, including $NVDL, which experienced only a fraction of MSTX’s volume during its early trading days.

Balchunas speculated on the factors driving MSTX’s early success, pointing to its connection with Bitcoin and the appeal of its volatility to traders. He noted that the ETF’s early action might be attributed to traders seeking exposure to the volatile nature of Bitcoin through MicroStrategy, especially when direct investment options like spot Bitcoin ETFs are limited.

Despite MSTX being one of the most volatile ETFs currently available in the United States, it remains less volatile than its European counterpart, the 3x MicroStrategy ETF ($3LMI LN). The European ETF has recorded a 90-day volatility exceeding 350%, making it one of the most volatile ETFs in the market. Balchunas observed that the 3x leveraged MicroStrategy ETF has consistently appeared in ETF volatility charts, often surpassing high-risk funds.

MicroStrategy’s stock has attracted significant interest from major market players in 2023, outpacing Bitcoin in performance. Recently, South Korea’s National Pension Fund increased its exposure to MSTR stock, reflecting confidence in the company’s growth and its strategy of adopting Bitcoin. The MSTR stock has recorded a 92% gain year-to-date, compared to Bitcoin’s 35% gain in 2024, indicating strong investor confidence.