Defiance ETFs has announced the launch of a new ETF focused on MicroStrategy shares with weekly payouts.
Goals and Features of the New ETF
The Defiance Leveraged Long + Income MSTR ETF was launched on May 1, 2025, offering weekly payouts of $0.3350 per share. The ETF allows investors to gain indirect exposure to Bitcoin price changes through MicroStrategy's assets. Managed by Defiance ETFs under CEO Sylvia Jablonski, the fund aims to enhance returns on MicroStrategy shares, targeting 150%-200% of their daily performance.
Connection to Bitcoin Volatility
The ETF's launch is aimed at meeting the interests of investors seeking diversification and benefits from MicroStrategy's movements. Experts are concerned about how Bitcoin's volatility might affect the payout stability of the ETF, considering MSTR is significantly tied to Bitcoin prices.
Investment Risks in the ETF
Investing in income-focused ETFs has gained popularity during periods of high asset volatility. Past trends suggest that returns may suffer during downturns of underlying assets like MicroStrategy stock and Bitcoin. Experts caution that the fund's structure involves risks from using leveraged and options strategies, with outcomes reliant on cryptocurrency market conditions and MicroStrategy's strategic decisions.
The launch of the new ETF from Defiance presents an interesting opportunity for investors looking to earn returns from MicroStrategy shares and indirectly from Bitcoin. However, potential risks associated with volatility require a cautious approach to investing.
