Strategy Bears Cave In as Anti-MSTR Leveraged ETF Hits Rock Bottom

Those betting against bitcoin (BTC)-holder MicroStrategy (MSTR) look to person tally retired of patience and look to beryllium exiting bearish bets.

On Monday, a U.S.-listed exchange-traded money (ETF) that provides a leveraged bearish vulnerability to shares of bitcoin holder MicroStrategy sank to beingness lows connected the backmost of near-record trading activity.

Prices for the Defiance regular people 2x abbreviated MSTR ETF, listed nether the ticker SMST connected Nasdaq, slipped 7.58% to $18.17 connected Monday, hitting a grounds debased for the 4th consecutive day, according to information root TradingView.

The diminution happened arsenic 2.88 cardinal shares changed hands, the second-largest trading measurement tally ever.

Bears capitulate arsenic BTC surges

SMST's high-volume illness points to capitulation of bears – those betting against MSTR person apt fixed up and are exiting the market.

A high-volume grounds debased typically indicates capitulation – marketplace participants surrendering to the relentless bearish inclination and exiting each their positions, giving up each anticipation of a recovery. This benignant of terms enactment often marks highest bearishness successful the marketplace oregon bottoms.

Bitcoin's terms tapped grounds highs supra $122,000 during Monday's Asian trading hours, providing bullish cues to each things tied to crypto. Later successful the day, shares successful MSTR roseate implicit 3% to $456, the highest since November.

Leveraged bearish bet

The 2x abbreviated ETF seeks to present regular concern results that are -200%, oregon minus 2x, the regular percent alteration successful the MSTR stock price. In different words, it's a leveraged bearish bet.

The ETF's price, however, has collapsed from implicit $2,000 connected the inception time successful August past year, and has been chiefly successful a downtrend, barring the little uptrend from $1,600 to $2,368 successful precocious August past year. As of Friday, the money had a nett inflow of $8.2 cardinal successful six months, according to VettaFi.

MSTR's stock terms has accrued multi-fold from $100 to implicit $440 during the aforesaid time. MicroStrategy is the largest publicly-listed bitcoin holder successful the world, boasting a coin stash of 601,550 BTC ($70.56 million) arsenic of writing.

2x agelong MSTR ETF rises

The Defiance regular people 2x agelong MSTR ETF roseate to astir $50 connected Monday, the highest since January 24, with trading volumes rising for the 4th consecutive time to tally 9.2 million.

As of Friday, MSTX had a nett six-month outflow of implicit $175 million, per VettaFi.

Read more: Anti-Bitcoin Vanguard Might Be the Largest Institutional Holder of MSTR Stock