Looking for Exposure to MSTR? Try These Two ETFs

MicroStrategy (MSTR) is known for its large holdings of Bitcoin (BTC-USD). By investing in the stock, investors can indirectly gain exposure to the cryptocurrency. Over the past year, the stock surged over 150%, driven by the rise in Bitcoin prices. Despite this massive surge, analysts’ 12-month average price target on MSTR stock implies another 38.2% upside potential. Thus, to gain exposure to MicroStrategy, investors may consider investing in these two ETFs: YieldMax MSTR Option Income Strategy ETF (MSTY) and T-Rex 2X Long MSTR Daily Target ETF (MSTU).

YieldMax MSTR Option Income Strategy ETF

The MSTY ETF is an actively managed fund that seeks to generate monthly income by selling call options on MicroStrategy stock. The fund does not invest directly in MSTR. MSTY was launched on February 22, 2024, and trades on the NYSEARCA. Its holdings include U.S. Treasury bills and derivatives that provide synthetic exposure to MicroStrategy stock.

Overall, the MSTY ETF has $4.77 billion in assets under management (AUM). Additionally, it has an expense ratio of 0.99%. The MSTY ETF has returned 12% over the past three months.

T-Rex 2X Long MSTR Daily Target ETF

MSTU is a leveraged ETF that aims to deliver daily investment results, before fees and expenses, equal to 200% of the daily performance of MicroStrategy stock. This means that if MSTR shares rise by 1% in a day, MSTU is designed to rise by 2% on that same day. The ETF is intended for short-term trading, not long-term investment.

The MSTU ETF has $1.74 billion in AUM and an expense ratio of 1.05%. Over the past three months, the MSTU ETF has generated a return of 66.53%.

Concluding Thoughts

ETFs provide indirect exposure to MicroStrategy, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider MSTY and MSTU, as these ETFs offer exposure to MSTR stock.