5 ETFs Betting Big on Michael Saylor's Bold Bitcoin Strategy
Investing
Michael Saylor’s Bitcoin strategy has attracted plenty of fanfare. Basically, MicroStrategy (NASDAAQ:MSTR) borrows money to buy more Bitcoin. The publicly-traded corporation currently owns about 2% of the world’s total Bitcoin supply, and Saylor is just getting started.
Not everyone likes Bitcoin, but there’s one thing that the naysayers can’t question. MicroStrategy has outperformed the stock market, and it’s not even close. Shares have marched up by 728% over the past year and have rallied by more than 2,600% over the past five years.
Those types of numbers are bound to get any investor’s attention. Sure enough, MicroStrategy has found itself in more ETFs. Investors who want outsized exposure to MSTR shares may want to consider these ETFs.
-
MicroStrategy has trounced the stock market by accumulating Bitcoin.
-
These ETFs aim to profit from Michael Saylor’s crypto strategy with outsized exposure to MSTR stock.
-
4 million Americans are set to retire this year. If you want to join them, click here now to see if you’re behind, or ahead. It only takes a minute. (Sponsor)
T-REX 2X Long MSTR Daily Target ETF (MSTU)
The T-REX 2X Long MSTR Daily Target ETF (BATS:MSTU) offers 2x leverage for MSTR stock. It aims to generate a 200% movement on all MSTR stock movements. For instance, if MicroStrategy shares gain 5% in one day, MSTU shares will gain 10%. While this setup rewards investors during rallies, it also amplifies losses when MSTR stock loses money.
The extra risk involved results in a lofty 1.05% expense ratio. High expense ratios are one of the things that minimize the returns of leveraged ETFs. The entire portfolio consists of MicroStrategy stock. MSTU is better for short-term trades than it is for long-term investors.
First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT)
The First Trust SkyBridge Crypto Industry & Digital Economy ETF (NYSEARCA:CRPT) has a 19.5% stake in MicroStrategy. Its second largest position, Coinbase (NASDAQ:COIN), currently makes up 17.3% of the fund’s total assets. The fund has delivered an annualized 16.9% return over the past three years, but that includes a 184.3% return over the past year.
CRPT also spreads its capital across numerous Bitcoin ETFs that exclusively follow the cryptocurrency. Investors who want outsized exposure to MicroStrategy and Bitcoin may want to give this ETF a closer look. It has a 0.85% expense ratio which is higher than most ETFs, but that seems to be normal for crypto-focused funds.
SPDR Galaxy Hedged Digital Asset Ecosystem ETF (HECO)
The SPDR Galaxy Hedged Digital Asset Ecosystem ETF (NYSEARCA:HECO) gives investors exposure to companies that will benefit from long-term tailwinds in blockchain technology and cryptocurrency industries. The fund has a 0.90% expense ratio and has returned 17.7% over the past three months. It’s still a new fund that was only launched on September 9, 2024. Shares are up by roughly 50% since its inception.
MicroStrategy is the 4th largest holding and makes up 7.9% of the fund’s total assets. HECO has a 9.7% stake in Coinbase, but its two largest positions are Riot Platforms (NASDAQ:RIOT) and Cipher Mining (NASDAQ:CIFR), which make up 28% of the fund’s total assets.
Bitwise Crypto Industry Innovators ETF (BITQ)
The Bitwise Crypto Industry Innovators ETF (NYSEARCA:BITQ) gives investors exposure to companies that are leading the new crypto economy. Unsurprisingly, MicroStrategy is the top stock in this ETF, making up 11.3% of total assets. Coinbase holds the #2 spot, consisting of 9.7% of the ETF’s total assets.
The fund has a 0.85% expense ratio and as 12-month yield of 0.90%. Like many crypto ETFs, this one is quite volatile. It has an annualized 9.3% return over the past three years but has surged by 131.1% over the past year.
VanEck Digital Transformation ETF (DAPP)
The VanEck Digital Transformation ETF (NASDAQ:DAPP) aims to mirror the MVIS Global Digital Assets Equity Index. It worked well for recent investors, as the stock is up by 125% over the past year. DAPP has a 0.51% expense ratio and $219.7 million in total assets.
MicroStrategy is the largest holding in the fund, making up 8.2% of total assets. DAPP also invests 8.0% of its capital into Coinbase shares. The fund has 22 total holdings spread across the finance and tech sectors.
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.