The Volatility Shares 2x Bitcoin Strategy ETF (BITX) jumped just over 20% Monday as bitcoin reached a new all-time high of $84,961, CoinMarketCap data showed.
The gains come as investors digested both Donald Trump’s sweeping presidential victory and MicroStrategy’s announcement of a massive bitcoin purchase, driving renewed enthusiasm in cryptocurrency markets.
The leveraged ETF, which aims to deliver twice the daily return of bitcoin, has emerged as a popular tool for traders seeking amplified exposure to the cryptocurrency’s volatile moves.
With $2.4 billion in assets, BITX has become one of the largest leveraged bitcoin-focused funds in the market.
“The Trump win has super-charged crypto investor sentiment and technical analysts see more upside for bitcoin,” Kent Thune, etf.com research lead, said. “The fear of missing out appears much stronger than the fear of downside risk. Thus, at the moment, the path of least resistance is clearly up.”
MicroStrategy added fuel to the rally, announcing it acquired 27,200 bitcoins for approximately $2 billion in cash, at an average of $74,463 per bitcoin, according to a company release.
The technology firm now holds 279,420 bitcoins worth approximately $16 billion, making it the largest corporate holding of the cryptocurrency.
MicroStrategy’s stock surged 19.4% on the news while related leveraged products like the Defiance Daily Target 2X Long MSTR ETF (MSTX) and T-Rex 2X Long MSTR Daily Target ETF (MSTU) soared 39.3% and 37.9%, respectively.
Other spot bitcoin ETFs also posted strong gains, with the iShares Bitcoin Trust (IBIT) rising 10.3% to reach $34.5 billion in assets under management, surpassing the nearly 20-year-old $32.9 billion iShares Gold Trust (IAU).
The T-Rex 2X Long Bitcoin Daily Target ETF (BTCL), a smaller competitor to BITX with $22.6 million in assets, matched its rival’s 20.3% gain as leveraged products capitalized on bitcoin’s momentum.
