There is always a bull market somewhere.
While shares of both Bitcoin and Bitcoin holders Strategy are falling, an exchange-traded fund that aims to move in the opposite direction of MSTR and double the daily change is hitting a new all-time high.
The exchange-traded fund is the GraniteShares 2x Short MSTR Daily ETF, which trades on Nasdaq under the ticker MSDD. It is an actively managed fund that aims to achieve -200% of the strategy’s daily performance. Simply put, if MSTR falls 2% in a day, the ETF targets a gain of 4% on that day (before fees/decay).
The fund was first launched on January 10, 2025 and is considered a high-risk, short-term tactical vehicle for shorts on MSTR. It also lives up to its reputation.
According to data source TradingView, the price of MSDD hit an all-time high of $114 on Tuesday, up 13.5% year-on-year, extending last year’s 275% gain.
MSDD’s sibling Defiance Daily Target 2x Short MSTR ETF (SMST) also hit an 11-month high of $113 on Tuesday. The fund will be listed on Nasdaq in August 2024.
In other words, MSTR thinks people who bought these ETFs have made a killing.
The strategy fell to $126 on Tuesday, its lowest level since September 2024, extending a multi-month bear market. The stock is currently down 76% from its all-time high of $543 in November.
Strategy is the world’s largest publicly listed Bitcoin holder, holding 713,502 Bitcoins ($54.24 billion) at press time. Of course, its stock price tends to follow Bitcoin’s market capitalization.
Bitcoin, the leading cryptocurrency by market capitalization, has fallen 12% this year, falling to $73,000 on Tuesday. This is the weakest level since late 2024. Prices have since rebounded to $76,000 as a narrowly approved financing package eased the risk of a near-term U.S. shutdown and stabilized risk sentiment in financial markets.
