Microstrategy (MSTR) is a popular name among those who are familiar with crypto stocks. Indeed, the software analytics company is one of the biggest corporate holders of Bitcoin (BTC-USD) and has raised a substantial amount of debt in order to grow its stockpile. And as if MSTR wasn’t already volatile enough because of its debt and Bitcoin holdings, a new MicroStrategy leveraged ETF (MSTX) issued by Defiance ETFs is quickly gaining popularity on Wall Street. In fact, it has already pulled in $127 million in assets in just six days, according to Bloomberg’s senior ETF analyst Eric Balchunas.
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With daily trading volumes surpassing $100 million, it is clear that investors have a strong interest in MicroStrategy, which many treat as a proxy for Bitcoin thanks to its strong ties to the cryptocurrency. Unsurprisingly, Balchunas described MSTX as the “mechanical bull” of ETFs due to its high volatility (it looks to multiply MSTR’s daily returns by 1.75x) and the potential for big short-term swings.
In addition, institutional interest in Bitcoin is growing. Recently, South Korea’s National Pension Service investing $33.75 million in MicroStrategy, while Japan’s GPIF and Michigan’s Retirement System invested in the crypto through various ETFs. This growing interest could eventually lead to a boost in demand for MSTX and MSTR.
Is MicroStrategy a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSTR stock based on eight Buys assigned in the past three months. Over the past year, MSTR has increased by a whopping 327%, and the average MSTR price target of $216.63 per share implies an upside potential of 47.47% from current levels.
