MSTU And MSTZ: The Only 2x ETFs On MicroStrategy And One Of The Most Volatile Ways To Play Bitcoin

As the Bitcoin price dances in the $60,000s, investors are reminded of an effectively inherent element – volatility. Now that Bitcoin has become mainstream, investors and traders have more ways than ever to gain exposure to this digital currency. They are no longer limited to buying and holding in dedicated crypto wallets or exchanges, thanks to a combination of regulatory tailwinds and tech innovation that has opened up the world of crypto directly within brokerage accounts.

While many people are focusing on Spot Bitcoin ETFs, one of the most interesting ways to capitalize on this opportunity includes listed companies that are piling Bitcoin onto their balance sheets, such as MicroStrategy.

The company’s strategic decision to invest heavily in Bitcoin ties its stock performance closely to the digital currency’s price swings. As a result, trading in MicroStrategy shares effectively becomes a play on Bitcoin’s infamous volatility. This has particularly appealed to traders who seek exposure to Bitcoin’s potential upsides and inherent risks, while also leveraging the liquidity and regulatory framework of a NASDAQ-listed stock. MicroStrategy’s own implied volatility is a potentially attractive feature for those looking to benefit from rapid price changes in the crypto market, magnified by the company’s significant Bitcoin holdings. With an average daily trading volume of 11 million shares in September, MicroStrategy stock offers no shortage of opportunities.

And now one way to play MicroStrategy with leverage is through a pair of ETFs launched by REX Shares — which recently surpassed $5 billion in assets under management — alongside ETF provider Tuttle Capital Management. Now, REX Shares and Tuttle Capital have launched the industry's only 2x/-2x ETFs for MicroStrategy - T-REX 2X Long MSTR Daily Target ETF (MSTU) and T-REX 2X Inverse MSTR Daily Target ETF (MSTZ).

REX's ETFs are the first of their kind to offer +200% and -200% exposure to MicroStrategy, reports REX Shares, potentially paving the way for traders who closely monitor MSTR stock movements to harness fresh possibilities.

Each of REX's latest products gives investors a way to play both sides of the coin. For example, the T-REX 2X Long MSTR Daily Target ETF was created for traders who are bullish on MSTR shares, delivering the potential to amplify gains with +200% exposure to the stock's daily movements. On the flip side, the T-REX 2X Inverse MSTR Daily Target ETF offers 200% inverse exposure to MSTR, offering traders who are bearish on MicroStrategy's stock price to bet on its decline.

With the options market now open, investors can take their trading strategies a step further by utilizing options to fine-tune their positions, hedge risk or capitalize on market volatility, said REX Shares. With the opportunities that options trading can provide, coupled with ETFs and Bitcoin, investors have no shortage of ways to play this dynamic market that is ripe with volatility.

To explore more information about the T-REX 2X Long and Inverse MSTR Daily Target ETFs, and other products in the T-REX suite, please visit please visit www.rexshares.com.

REX ETFs Appeal to Bulls and Bears:

Options give traders the opportunity to purchase contracts that give them the right to buy or sell an asset, like a stock or cryptocurrency, for a pre-set price over a specified term. Options trading has taken hold in the Bitcoin market, where monthly expiry amounts on BTC contracts have been ranging from $8 billion to $14 billion since the flagship cryptocurrency's most recent halving event.

After recently introducing the first and only 2x leveraged MSTR ETFs to the market, REX Shares says it will continue to innovate, essentially giving sophisticated traders a chance to place leveraged wagers on Bitcoin, of which MicroStrategy owns over $9 billion worth, as of September. Given MicroStrategy's commitment to owning Bitcoin, its stock is often as volatile as the cryptocurrency itself.

Investors should be aware that trading these funds is not the same as investing directly into Bitcoin or MicroStrategy, commanding a heightened level of portfolio management. You can learn more about these ETFs as well as other trading products that REX Shares has to offer here.

 

Investors should consider the investment objectives, risk, charges, and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the T-REX ETFs please call 1-844-802-4004 or visit our website at rexshares.com. Read the prospectus and summary prospectus carefully before investing.

There is no guarantee that the Funds will achieve their investment objectives. Investing involves risk, including possible loss of principal.

The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leverage (2X) investment results, understand the risks associated with the use of leverage and are willing to monitor their portfolios frequently. Investing in the funds is not equivalent to investing directly in MSTR as the fund will generally hold 0% of underlying shares of MSTR. Because of daily rebalancing and the compounding of each day’s return over time, the return of the Fund for periods longer than a single day will be the result of each day’s returns compounded over the period, which will very likely differ from 200% of the return of the underlying security over the same period. The Fund will lose money if the underlying security performance is flat over time, and as a result of daily rebalancing, the underlying security’s volatility and the effects of compounding, it is even possible that the Fund will lose money over time while the underlying security’s performance increases over a period longer than a single day.

The Funds’ investment adviser will not attempt to position each Fund’s portfolio to ensure that a Fund does not gain or lose more than a maximum percentage of its net asset value on a given trading day. As a consequence, if a Fund’s underlying security moves more than 50%, as applicable, on a given trading day in a direction adverse to the Fund, the Fund’s investors would lose all of their money.

Important Risks

Fixed Income Securities Risk. When the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities owned by the Fund.

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 +/-200% of MSTR’s performance, before fees and expenses.

Leverage Risk. The Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. An investment in the Fund is exposed to the risk that a decline in the daily performance of MSTR will be magnified. This means that an investment in the Fund will be reduced by an amount equal to 2% for every 1% daily decline in MSTR, not including the costs of financing leverage and other operating expenses, which would further reduce its value.

Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. Investing in derivatives may be considered aggressive and may expose the Fund to greater risks, and may result in larger losses or small gains, than investing directly in the reference assets underlying those derivatives, which may prevent the Fund from achieving its investment objective.

Indirect Investment Risk. MicroStrategy Inc. is not affiliated with the Trust, the Adviser or any affiliates thereof and is not involved with this offering in any way, and has no obligation to consider the Fund in taking any corporate actions that might affect the value of the Fund. The Trust, the Fund and any affiliate are not responsible for the performance of MicroStrategy Inc. and make no representation as to the performance of MSTR. Investing in the Fund is not equivalent to investing in MSTR. Fund shareholders will not have voting rights or rights to receive dividends or other distributions or any other rights with respect to MSTR.

Counterparty Risk. A counterparty may be unwilling or unable to make timely payments to meet its contractual obligations or may fail to return holdings that are subject to the agreement with the counterparty. If the counterparty or its affiliate becomes insolvent, bankrupt or defaults on its payment obligations to the Fund, the value of an investment held by the Fund may decline. Additionally, if any collateral posted by the counterparty for the benefit of the Fund is insufficient or there are delays in the Fund’s ability to access such collateral, the Fund may not be able to achieve its leveraged investment objective.

Industry Concentration Risk. The Fund will be concentrated in the industry to which MicroStrategy Inc. is assigned (i.e., hold more than 25% of its total assets in investments that provide inverse exposure to the industry to which MicroStrategy Inc. is assigned). A portfolio concentrated in a particular industry may present more risks than a portfolio broadly diversified over several industries. As of the date of this prospectus, MSTR is assigned to the information technology sector and the software industry.

Liquidity Risk. Holdings of the Fund may be difficult to buy or sell or may be illiquid, particularly during times of market turmoil. Illiquid securities may be difficult to value, especially in changing or volatile markets.

Non-Diversification Risk. The Fund is classified as “non-diversified” under the Investment Company Act of 1940, as amended. This means it has the ability to invest a relatively high percentage of its assets in the securities of a small number of issuers or in financial instruments with a single counterparty or a few counterparties.

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.

Information Technology Sector Risk. The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and competition, both domestically and internationally, including competition from competitors with lower production costs. In addition, many information technology companies have limited product lines, markets, financial resources or personnel. The prices of information technology companies and companies that rely heavily on technology, especially those of smaller, less-seasoned companies, tend to be more volatile and less liquid than the overall market. Information technology companies are heavily dependent on patent and intellectual property rights, the loss or impairment of which may adversely affect profitability. Additionally, companies in the information technology sector may face dramatic and often unpredictable changes in growth rates and competition for the services of qualified personnel.

Distributor: Foreside Fund Services, LLC, member FINRA, not affiliated with REX Shares or the Funds’ investment advisor.