Recent interest in the Defiance Daily Target 2x Short MSTR ETF, which moves inversely to Strategy stocks, highlights a shift in market sentiments. The fund saw a 7% increase on August 5 amidst volatile Bitcoin prices.
Overview of SMST ETF
The SMST ETF, listed on Nasdaq, is designed to return double the inverse of Strategy (MSTR)’s daily price change. This means if MSTR decreases by 1%, the ETF aims to rise by 2%. At the time of publishing, it was trading at $24.49.
Bitcoin Mining Data and Investment Strategies
The SMST ETF closely tracks Strategy (MSTR), the largest corporate holder of Bitcoin, which owns over 628,000 BTC valued at over $71 billion. MSTR’s share price is often tied to Bitcoin's market price, and in recent months, this ETF attracted $16.3 million in net inflows, while its bullish counterpart experienced $275 million in outflows.
Market Future Prospects
Some traders believe the recent rise in the ETF is not merely a quick reaction but shows concern over Bitcoin's price. This comes as MSTR shares have been under pressure since peaking in September 2024 at around $2,368. Increased demand for the SMST ETF may indicate traders preparing for potential declines in Bitcoin or MSTR shares in the upcoming weeks.
Thus, the current dynamics of the SMST ETF underscore market volatility and may reflect a broader trend among traders anticipating further declines.
