đ¨ Leveraged Bearish ETF Skyrockets 19%âMSTR & Bitcoin Brace for Impact
Wall Street's favorite doom-and-gloom ETF just moonedâironicallyâas short sellers pile into MicroStrategy and Bitcoin bets. Here's why the bears are roaring.
The Contrarian Cash Grab
While crypto bulls nap on their laser-eyed memes, leveraged bear funds quietly pocketed double-digit gains. The play? A brutal wager against Michael Saylor's BTC-hoarding empire and its favorite asset.
Numbers Don't Lie (But Traders Do)
That 19% surge wasn't luckâit's hedge funds prepping for what they swear is an 'inevitable' crypto reckoning. Meanwhile, retail investors keep buying the dip with grocery money. Classic.
Bottom Line: When inverse ETFs rally this hard, someone's about to get liquidated. Spoiler: It's usually the guys using margin to chase 'generational buying opportunities.'
The macro-level trendline breakout is supported by a powerful bullish signal in the FORM of a bullish marubozu candle, indicating that buyers were in firm control last week and momentum is now decisively upward. The bullish marubozu candle is identified by a prominent green body and little-to-no wicks (shadows), indicating buyer dominance.
The overall takeaway for traders is that the SMST is suggesting a dour outlook for Strategy and bitcoin. Strategy is the largest publicly listed Bitcoin holder, possessing 628,791 BTC, worth over $71 billion, as of the time of writing.
The 2x short ETF seeks to deliver daily investment results that are -200%, or minus 2x, the daily percentage change in the MSTR share price. The fund represents a bearish leveraged bet on MSTR.
The ETF has seen a net inflow of 16.3 million in the past six months, according to data source VettaFi. Meanwhile, its bullish peer, the 2x long MSTR fund (SMST), has seen net outflows of over $275 million.