There is always a bull market somewhere.
While bitcoin and stocks in the bitcoin holder strategy are falling, an exchange-traded fund designed to move in the opposite direction of the MSTR and double its daily change has hit an all-time high.
This exchange-traded fund is the GraniteShares 2x Short MSTR Daily ETF, which trades under the ticker MSDD on the Nasdaq. It is an actively managed fund designed to deliver -200% of the strategy’s daily performance. Simply put, if MSTR falls 2% in a day, the ETF targets a 4% gain on the same day (before fees/decay).
Debuted on January 10, 2025, the fund is seen as a high-risk short-term tactical tool for bears betting against MSTR. And it has lived up to its reputation.
MSDD’s price hit a record high of $114 on Tuesday, up 13.5% on the year, extending the past year’s 275% gain, according to data source TradingView.
MSDD’s compatriot, the Defiance Daily Target 2x Short MSTR ETF (SMST), also hit an 11-month high of $113 on Tuesday. This fund debuted on the Nasdaq in August 2024.
In other words, the MSTR bears out there who read up on these ETFs have made a killing.
The strategy fell to $126 on Tuesday, its lowest since September 2024, extending its multi-month bear market. The stock is now down a staggering 76% from its lifetime high of $543 last November.
Strategy is the world’s largest publicly traded bitcoin holder, hoarding 713,502 BTC ($54.24 billion) at press time. Naturally, its stock price tends to follow fluctuations in bitcoin’s market value.
Bitcoin, the leading cryptocurrency by market capitalization, is down 12% this year, trading as low as $73,000 on Tuesday. It was the weakest since late 2024. Since then, prices have returned to $76,000, thanks to a narrowly approved financing package that reduced short-term US shutdown risk and stabilized risk sentiment in financial markets.
