Crypto’s ETF Time Bomb Explodes: Strategy’s 2X Funds Crash 80% — Could Tesla, Nvidia Bulls Be Next?
Strategy Inc. (NASDAQ:MSTR), once the poster child for turning Bitcoin exposure into a publicly listed equity, is rapidly morphing into the first real stress test for the booming single-stock leveraged ETF market.
After a blistering rally earlier this year, the trade has reversed so sharply that the products built around Strategy’s daily moves have crashed into the ranks of the 10 worst-performing ETFs in the US, per Bloomberg.
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On Tuesday, Strategy shares are up more than 6% on news that it has joined the Open Semantic Interchange (OSI). The move will accelerate Strategy’s open ecosystem strategy and expand the reach of Strategy Mosaic — its AI-powered Universal Semantic Layer built for enterprise data integration.
The announcement landed on a day of heightened Bitcoin volatility, which helped lift Strategy’s stock. This type of volatility is whiplashing the leveraged ETFs tied to Strategy.
Meanwhile, Strategy’s valuation premium-the mNAV ratio-has …
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