T-Rex Group’s Unique ETF Offerings

T-Rex Group, a prominent exchange-traded funds (ETFs) issuer, has recently made headlines with its innovative ETF filings. One of the most intriguing filings is for an ETF that plans to take a 2x long position in Microstrategy (MSTR), a company heavily invested in bitcoin (BTC).

The T-Rex 2X Long MSTR Daily Target ETF aims to deliver returns that are 200% of MicroStrategy’s daily performance. This ETF effectively offers a leveraged long position on bitcoin through its connection to MSTR.

On the flip side, T-Rex also filed for an ETF that will take a 2x inverted position in MSTR. This means that investors can also take a leveraged short position on bitcoin through this product.

MSTR, with its significant exposure to bitcoin, is known for its volatility, closely mirroring the movements of the world’s largest digital asset. The stock’s current implied volatility stands at a high 85.6, although it is trending lower compared to its recent average due to bitcoin’s stable price performance.

Recently, MicroStrategy’s CEO, Michael Saylor, made waves by announcing the firm’s plan to offer $500 million in convertible notes to further bolster its bitcoin holdings.

Bloomberg ETF analyst Eric Balchunas expressed his views on these unique ETF offerings by T-Rex. He believes that these ETFs are poised to be the most volatile ever seen in the U.S., with a volatility potential that is 20 times higher than the SPX index. Balchunas likened these ETFs to the “ghost pepper of ETF hot sauce,” emphasizing their extreme potential for volatility.

It’s worth noting that other ETF issuers, such as Defiance and GraniteShares, have also introduced products that offer a short position in MSTR.

In addition to these filings, T-Rex had previously filed for six leveraged inverse bitcoin ETFs in March, featuring positions ranging from 1.5x to 2x.