Defiance Launches MSTX, The First Leveraged Single-Stock ETF on MicroStrategy in the US
15 August 2024 - 7:00AM
Defiance ETFs is proud to unveil MSTX, the first single-stock long
leveraged ETF for MicroStrategy. MSTX seeks to provide 175% long
daily targeted exposure to MicroStrategy. Defiance’s single-stock
ETFs provide leveraged exposure to disruptive companies without the
need for a margin account.
MicroStrategy, known for its visionary approach to data
analytics and business intelligence, has emerged as a prominent
player in the Bitcoin market. With a strategic focus on becoming
one of the largest holders of Bitcoin, MicroStrategy has captured
the attention of investors seeking leveraged exposure to Bitcoin.
As of the end of Q1 2024, MicroStrategy held approximately 214,400
bitcoins with a market value of around $15.22 billion.
"As we introduce MSTX, our long leverage MicroStrategy ETF,
we're amplifying the potential for investors seeking long leveraged
exposure to Bitcoin. Given MicroStrategy's inherent higher beta
compared to Bitcoin, MSTX offers a unique opportunity for investors
to maximize their leverage exposure to the Bitcoin market within an
ETF wrapper," says Sylvia Jablonski, CEO of Defiance ETFs.
The Fund is not intended to be used by, and is not
appropriate for, investors who do not intend to actively monitor
and manage their portfolios. The Fund pursues a daily leveraged
investment objective, which means that the Fund is riskier than
alternatives that do not use leverage because the Fund magnifies
the performance of its Underlying Security. The Fund is not
suitable for all investors. The Fund is designed to be utilized
only by sophisticated investors, such as traders and active
investors employing dynamic strategies. Investors
who do not understand the Funds, or do not intend to actively
manage their funds and monitor their investments should not buy
shares of the Funds.
About Defiance ETFs
Founded in 2018, Defiance stands as a leading ETF issuer
dedicated to income and thematic investing. Defiance also pioneers
leveraged ETFs designed for traders seeking tactical
opportunities.
Our suite of first-mover leveraged & thematic ETFs
empowers investors to express targeted views on disruptive
innovations, including artificial intelligence, machine learning,
and quantum computing, while our actively managed options ETFs are
designed to seek current income.
Important Disclosures
The Funds' investment objectives, risks, charges, and expenses
must be considered carefully before investing. The prospectus
contains this and other important information about the investment
company. Please read carefully before investing. A hard copy of the
prospectuses can be requested by calling 833.333.9383.
Defiance ETFs LLC is the ETF sponsor. The Fund’s investment
adviser is Tidal Investments, LLC (“Tidal” or the “Adviser”).
Investing involves risk. Principal loss is
possible.
There is no guarantee that the Fund’s investment strategy will
be properly implemented, and an investor may lose some or all of
its investment.
Underlying Security Risk. The underlying
security is subject to many risks that can negatively impact the
Fund.
Leverage Risk. Leverage may increase the
risk of loss and cause fluctuations in the market value of the
Fund’s portfolio to have disproportionately large effects or cause
the NAV of the Fund generally to decline faster than it would
otherwise.
Derivatives Risk. Derivatives may be more
sensitive to changes in market conditions and may amplify
risks.
Effects of Compounding and Market Volatility
Risk. The Fund has a daily leveraged investment objective
and the Fund’s performance for periods greater than a trading day
will be the result of each day’s returns compounded over the
period, which is very likely to differ from the Fund performance,
before fees and expenses.
Single Issuer Risk. Issuer-specific
attributes may cause an investment in the Fund to be more volatile
than a traditional pooled investment which diversifies risk or the
market generally. The value of the Fund, which focuses on an
individual security, may be more volatile than a traditional pooled
investment or the market as a whole and may perform differently
from the value of a traditional pooled investment or the market as
a whole.
MSTR Performance Risk. MSTR may fail to meet
its publicly announced guidelines or other expectations about its
business, which could cause the price of MSTR to decline.
Bitcoin Risk. While the Fund will not directly
invest in digital assets, it will be subject to the risks
associated with Bitcoin by virtue of its investments in options
contracts that reference MSTR.
New Fund Risk. As of the date of this
prospectus, the Fund has no operating history and currently has
fewer assets than larger funds. Like other new funds, large inflows
and outflows may impact the Fund’s market exposure for limited
periods of time.
New Fund Risk. As of the date of this
prospectus, the Fund has no operating history and currently has
fewer assets than larger funds. Like other new funds, large inflows
and outflows may impact the Fund's market exposure for limited
periods of time.
Brokerage Commissions may be charged on trades.
MSTX is distributed by Foreside Fund Services, LLC.
Contact Information:
David Hanono
Defiance ETFs
Tel: 833.333.9383
info@DefianceETFs.com