Defiance ETFs Experience Record Trading Amid MSTR Share Decline

According to CoinDesk, Defiance's leveraged Strategy (MSTR) exchange-traded funds (ETFs) witnessed a significant increase in trading activity on Monday as the shares of the bitcoin-holding firm dropped to their 200-day average. A record 24.33 million shares of the Defiance daily target 2x long MSTR ETF, known by the ticker MSTX, were traded. The ETF's price fell by 32% to $17.90, marking its lowest point since September, as per TradingView data. This ETF aims to achieve 200% of the daily percentage change in the share price of Strategy, previously recognized as MicroStrategy. In contrast, the Defiance daily target 2x short MSTR ETF (SMST) recorded a trading volume of 51.21 million, the highest since November 24. This ETF is designed to provide investment results that correspond to twice the inverse of the daily performance of Strategy's shares. However, the net inflow figures for both funds on Monday remain unavailable. MSTR's shares fell by 16.6% on Monday, reaching their 200-day simple moving average (SMA) and revisiting the late February low of $231.62. This decline occurred amid broader market concerns over a potential U.S. recession and the continued rise of the anti-risk Japanese yen. The share price has decreased by 55% since peaking at $543 on November 21. Strategy holds the title of the world's largest public-listed bitcoin holder, with a substantial reserve of 499,096 BTC valued at $40.4 billion. The company began its bitcoin accumulation strategy in November, using it as a balance sheet asset and has aggressively pursued this strategy by funding purchases through debt sales. On Monday, Strategy announced a $21 billion at-the-market (ATM) offering of its Series A preferred stock (STRK), with the majority of the proceeds intended for new bitcoin acquisitions.